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Assume that we want to calculate the PV of each of the following transactions. Which one would require the formula for the PV of an
Assume that we want to calculate the PV of each of the following transactions. Which one would require the formula for the PV of an annuity due? a. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. b. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. c. Bahwat Company plans to deposit a lump sum of $100,000 for the construction of a solar farm in 4 years. d. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year
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