Ans: P = 39,000{1 - [(1 + 0.07)5 / (1 + 0.10)5]} / (0.10 - 0.07)
Explanation:
The Present Value formula is
P = A{1 - [(1 + g)n / (1 + i)n]} / (i - g)
P = 39,000{1 - [(1 + 0.07)5 / (1 + 0.10)5]} / (0.10 - 0.07)
Thus, option [d] is correct answer.
4.69 The cost for increasing the production pacity in a certain manufacturing facilit is expected to...
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