Jenna Smith recently purchased an annuity contract that will pay her ($ 375,000) per year for the
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Jenna Smith recently purchased an annuity contract that will pay her \(\$ 375,000\) per year for the next seven years. According to Smith's calculations, the estimated internal rate of return on this investment is 14 percent. If Smith's cost of capital is 10 percent, what is the estimated NPV of the annuity investment?
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ANU NAIR
My Name is Anu Nair P.I have been working as an Assistant Professor in the Department of Mechanical Engineering at Mar Baselios Christian College of Engineering & Technology, Kuttikkanam, Peermade since 2019. I have over 6 years of Teaching as well as Industrial Experience. I obtained a bachelor’s degree in Mechanical Engineering from Mahatma Gandhi, Kottayam, and a master’s degree from Anna University, Chennai.I have six Years experience in teaching. I have published over Thirty technical papers in national and international journals and conferences. I am also a Fellow of the Institution of Engineers (India), I have passed NPTEL Online Certification Examinations in Laws of Thermodynamics and Refrigeration and Air Conditioning with Elite Score. I have a life member of the Indian Society for Technical Education, India as well as ISHMT (Indian Society for Heat and Mass Transfer).
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