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1. What is the present value of $1000 per year annuity for five years at an interest rate of 14%? Hint: The future value is
1. What is the present value of $1000 per year annuity for five years at an interest rate of 14%? Hint: The future value is zero. This is 5 recurring payments. The answer is closest to:
Group of answer choices
$3,433.08
$6,352.85
None of the above
$3,604.78
2.
Capital equipment costing $250,000 today has 50,000 salvage value at the end of 5 years. If the straight line depreciation method is used, what is the book value of the equipment at the end of two years?
Group of answer choices
$50,000
$200,000
$140,000
$170,000
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