Calculate the Present Value of a Growing Annuity Given the Following

question 264

Multiple Choice

Calculate the present value of a growing annuity given the following information: annual cash flows = $60,000; cash flow growth rate =2 %; required rate of return = 7%; timeframe = 10 years.

• A) $456,390
• B) $466,390
• C) $476,390
• D) $486,390
• E) $496,390

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