Calculate the Present Value of a Growing Annuity Given the Following

question 191

Multiple Choice

Calculate the present value of a growing annuity given the following information: annual cash flows = $200,000; cash flow growth rate = 10%; required rate of return = 3%; timeframe = 25years.

• A) $2,105,008
• B) $2,205,008
• C) $2,305,008
• D) $2,405,008
• E) $2,505,008

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