7. The present worth of a cash flow of $1,000 that occurs every 10 years forever, with the first on occurring now with i% per year is: a. $1,000+ $1,000 x (A/F, i %, 10) / i%} b. $1,000+ ($1,000/i%) × 10} c. $1,000 (A/F, 1%, 10)/1% d. $1,000+ ($1,000 x (A/P, 1%, 10) /i%}
7. The present worth of a cash flow of $1,000 that occurs every 10 years forever, with the first on occurring now with i% per year is: a. $1,000+ $1,000 x (A/F, i %, 10) / i%} b. $1,000+ ($1,000/i%) × 10} c. $1,000 (A/F, 1%, 10)/1% d. $1,000+ ($1,000 x (A/P, 1%, 10) /i%}
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 5MCQ: An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second...
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![7. The present worth of a cash flow of $1,000 that occurs every 10 years forever, with the first one
occurring now with i% per year is:
a. $1,000+ {$1,000 x (A/F, i%, 10) / i%}
b. $1,000+ (($1,000/i%) × 10}
c. $1,000 (A/F, 1%, 10) / 1%
d. $1,000+ $1,000 x (A/P, 1%, 10)/1%}](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0fa477e3-691c-46e0-90c3-3d7d13a96736%2Ff242fd6f-cf08-44cc-bff6-a1202bfc7f94%2Fu2ggx6d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. The present worth of a cash flow of $1,000 that occurs every 10 years forever, with the first one
occurring now with i% per year is:
a. $1,000+ {$1,000 x (A/F, i%, 10) / i%}
b. $1,000+ (($1,000/i%) × 10}
c. $1,000 (A/F, 1%, 10) / 1%
d. $1,000+ $1,000 x (A/P, 1%, 10)/1%}
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