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A private company undertakes a five-year project that requires some annual payments. The payment for the first year is $2,000. The payment will then increase
A private company undertakes a five-year project that requires some annual payments. The payment for the first year is $2,000. The payment will then increase by 5% each subsequent year. The interest rate is fixed at 5% per year. What is the value of this cash flow as of now?
Question options:
$9,328
$9,524
$9,442
$9,112
$10,226
with explanation please
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