Question
A project with initial investment of $10,000 has cash inflows of $4,000 per year for 4 years. If the cost of capital is 10%, what
A project with initial investment of $10,000 has cash inflows of $4,000 per year for 4 years. If the cost of capital is 10%, what is its equivalent annual annuity (EAA)?
a) $4,000
b) $2,679
c) $1,500
d) $845
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Introductory Econometrics A Modern Approach
Authors: Jeffrey M. Wooldridge
4th edition
978-0324581621, 324581629, 324660545, 978-0324660548
