Present Value of an Annuity: Craymore Tech Is Expecting Cash

question 73

Multiple Choice

Present value of an annuity: Craymore Tech is expecting cash flows of $67,000 at the end of each year for the next five years. If the firm's discount rate is 17 per cent, what is the present value of this annuity? (Round to the nearest dollar.)

• A) $214,356
• B) $241,653
• C) $278,900
• D) $197,776

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