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An investment will pay $15,100 at the end of each year for eight years and a...

An investment will pay $15,100 at the end of each year for eight years and a one-time payment of $151,000 at the end of the eighth year. (FV of $1, PV of $1, FVA of $1, and PVA of $1)(Use the appropriate factor(s) from the tables provided.)


Determine the present value of this investment using a 8% annual interest rate. (Round your answer to nearest whole dollar.)

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Answer #1

Present value of this investment

Interest rate (r) = 8%

n = 8 years

Present value = $15,100*PVAF(8%,8) + $151,000*PVF(8%,8)

= $15,100 * 5.74664 + $151,000 * 0.5403

= $86,774.264 + $81,585.3

= $168,360

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