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Your company invests in adjacent land to expand your production facility. The land is unimproved, however, and your since your company spent capital upfront to
Your company invests in adjacent land to expand your production facility. The land is unimproved, however, and your since your company spent capital upfront to purchase the land, there is no money to build currently. You have to take small loans out for the land preparation each year. The following table indicates your spending pattern for land improvement: Year Preparation Loan $6,674 oot AW N = = $8,050 $9,426 $10,802 $12,178 $13,554 Based on this loan pattern, at 4% interest, which solution would you expect yield the equivalent uniform annual land improvement amount? A. $6,674(F/P, 4%, 6) + $1,376(P/G, 4%, 6) o B. $6,674 + $1,376(A/G, 4%, 6) C. $6,674(P/G, 4%, 6) + $1,376(F/A, 4%, 6) o D. $6,674(P/A, 4%, 6) + $1,376(A/G, 4%, 6)
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