What is the equivalent annuity starting in year 1 and ending in year 5 for the following project (assume i = 7%) Cash flow ($) n (year) 1 |-1000 -600 -500 4 5 |-100 A) 472.7 B) 474.7 C) 471.0 D) 474.1

What is the equivalent annuity starting in year 1 and ending in year 5 for the following project (assume i = 7%) Cash flow ($) n (year) 1 |-1000 -600 -500 4 5 |-100 A) 472.7 B) 474.7 C) 471.0 D) 474.1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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What is the equivalent annuity starting in year 1 and ending in year 5 for the following
project (assume i = 7%)
Cash flow ($)
n (year)
|-1000
2
|-600
-500
3
4
|-100
A) 472.7
B) 474.7
C) 471.0
D) 474.1

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