The Formula for Calculating the Present Value Factor for an Annuity

question 103

Multiple Choice

The formula for calculating the present value factor for an annuity of $1 is

• A) Amount to be invested / Annual average net income
• B) Annual net cash flow / Amount to be invested
• C) Annual average net income / Amount to be invested
• D) Amount to be invested / Equal annual net cash flows

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Definitions:

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