An investment of $80,000 is expected to generate a net annual income of $27,000 for 5 years. If the study period is 20 years, and assuming this alternative will be repeated over the study period, what is the present worth of this investment if MARR is 11%? O a. $5,354 O b. $21,418 O c. $135,010 O d. $42,639 e. $19,789

An investment of $80,000 is expected to generate a net annual income of $27,000 for 5 years. If the study period is 20 years, and assuming this alternative will be repeated over the study period, what is the present worth of this investment if MARR is 11%? O a. $5,354 O b. $21,418 O c. $135,010 O d. $42,639 e. $19,789

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 28P

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