Determine the five-year equivalent annual annuity of the following project if the appropriate
discount rate is 16%.
Initial Outflow = $150,000
Cash Flow Year 1 = $40,000
Cash Flow Year 2 = $90,000
Cash Flow Year 3 = $60,000
Cash Flow Year 4 = $0
Cash Flow Year 5 = $80,000
A) $7,058 B) $9,872 C) $9,454 D) $8,520
D
Business
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