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A company undertakes a multi-year project that requires multiple annual payments. First payment starts at the end of year 3 in the amount of $100,000.
A company undertakes a multi-year project that requires multiple annual payments. First payment starts at the end of year 3 in the amount of $100,000. It will then increase by $10,000 each subsequent year and the last payment is made at year 10 in the amount of $170,000. The interest rate is fixed at 7% a year. What is the present worth (t=0) of this series of cash flows (arithmetic series)? O 883,007.85 685,665.21 O 827,547.83 O 856,018.52 O 776,434.48
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