Question: 1 . Cash flows begin at $ 2 5 , 0 0 0 in year 1 and increases each year until year 1 5 .

1. Cash flows begin at $25,000 in year 1 and increases each year until year 15. If the interest rate is 6%, what is the present value when:
a. The annual increase is $5,000?
b. The annual increase is 10%?

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