Question
I need help with this because i do not know if it is a Ordinary Annuity or Annuity Due. Please do not answer is you
I need help with this because i do not know if it is a Ordinary Annuity or Annuity Due. Please do not answer is you do not know the difference.
A company has a project to install a new production line. This project will finish after two years. Then the firm would anticipate the first annual cash flow from this project to be $1 million, one year after the production line is installed. Suppose the production line will work without extra costs for 5 years, and the annual cost of capital (r) is 3.5 percent. Calculate the present value of this project.
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