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Excellent Inc. has an opportunity to invest in a project that will pay $1,000 at the end of year 1, and each year afterward the
Excellent Inc. has an opportunity to invest in a project that will pay $1,000 at the end of year 1, and each year afterward the payoff will increase by 6 percent, so that at the end of year 2, the payoff will be $1,060. If the appropriate discount rate is 10 percent, what is the present value of the investment to the nearest $100? It seems to me that we will need to use one of the convenience formulas to find this present value rather than a set of tables. please show work
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