Which of the following is the formula to compute present value factor of an annuity of...
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Which of the following is the formula to compute present value factor of an annuity of $1 according to the internal rate of return method? a. Present value factor of an annuity of $1 = Total present value of net cash flow ÷ Amount to be invested O b. Present value factor of an annuity of $1 = Total present value of net cash flow + Amount to be invested O c. Present value factor of an annuity of $1 = Amount to be invested + Equal annual net cash flows O d. Present value factor of an annuity of $1 = Amount to be invested ÷ Equal annual net cash flows Which of the following is the formula to compute present value factor of an annuity of $1 according to the internal rate of return method? a. Present value factor of an annuity of $1 = Total present value of net cash flow ÷ Amount to be invested O b. Present value factor of an annuity of $1 = Total present value of net cash flow + Amount to be invested O c. Present value factor of an annuity of $1 = Amount to be invested + Equal annual net cash flows O d. Present value factor of an annuity of $1 = Amount to be invested ÷ Equal annual net cash flows
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The detailed answer for the above question is provided below The present value factor of an annuity of 1 is a term used in financial calculations espe... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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