51.Dr. Patriot has been working on an advanced ballistic missile technology for the U.S. military. The technology is expected to be available to the military seven years from today. It will generate annual income of $2,000,000 sevenyears from now and that annual income will grow at 2percent perpetually starting that year. What is the present value of the technology if interest rate is assumed to be 6 percent constant?Round it up to the nearest dollar.(Note: This question is worth more)a.$23,498,685b.$35,248,027c.$33,317,111d.$22,168,570e.$33,252,856

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
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51.Dr. Patriot has been working on an advanced ballistic missile technology for the U.S. military. The technology is expected to be available to the military seven years from today. It will generate annual income of $2,000,000 sevenyears from now and that annual income will grow at 2percent perpetually starting that year. What is the present value of the technology if interest rate is assumed to be 6 percent constant?Round it up to the nearest dollar.(Note: This question is worth more)a.$23,498,685b.$35,248,027c.$33,317,111d.$22,168,570e.$33,252,856

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