Question: Your machine operator is becoming more productive, and generates additional profit each year. You expect to receive $25,000 in profit at the end of this

Your machine operator is becoming more productive, and generates additional profit each year. You expect to receive $25,000 in profit at the end of this year, but this will increase 6% a year for the next 15 years. If you have a 13% annual interest rate on your investments (compounded annually), what is the Present Value of the profits over the next 15 years?

The answer is not $228,768

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