Calculate the Present Value of a Growing Annuity Given the Following

question 379

Multiple Choice

Calculate the present value of a growing annuity given the following information: current cash flows: $200,000; cash flow growth rate = 5%; timeframe = 50 years; required rate of return = 12%.

• A) $2,443,773
• B) $2,543,773
• C) $2,643,773
• D) $2,743,773
• E) $2,843,773

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