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XYZ Computer Company has developed a new line of desktop computers. It is estimated that the cash returns generated by the new product line will
XYZ Computer Company has developed a new line of desktop computers. It is estimated that the cash returns generated by the new product line will be $600,000 per year for the next four years, and then $400,000 per year for two years after that (the cash returns occur at the end of each year). At a 5% interest rate, what is the present value of these cash returns?
a. | $3,105,281 | |
b. | $2,516,793 | |
c. | $2,739,467 | |
d. | $3,934,57 |
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