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Calculation of the Amount of the Equal Periodic Payments That

question 66

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Calculation of the amount of the equal periodic payments that would be required at the end of each year to accumulate a $20,000 fund at the end of the tenth year is most readily determined by reference to a table that shows which of the following?


Definitions:

NPV

An abbreviation for Net Present Value, it assesses the worth of future cash flows in today's dollars, subtracting the initial investment.

PI

A mathematical constant representing the ratio of a circle's circumference to its diameter, approximately 3.14159.

Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment.

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