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Determine the five-year equivalent annual annuity of the following project if the ap¬propriate discount rate is 16%:
Initial Outflow = $150,000 Cash Flow Year 1 = $40,000 Cash Flow Year 2 = $90,000 Cash Flow Year 3 = $60,000 Cash Flow Year 4 = $0 Cash Flow Year 5 = $80,000

a. $9,872
b. $8,520
c. $7,058
d. $9,454

 

Basic Finance, Finance

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