QS B6 Present value of an annuity LO P3
Beene Distributing is considering a project that will return $230,000 annually at the end of each year for the next ten years. If Beene demands an annual return of 9% and pays for the project immediately, how much is it willing to pay for the project? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PVA factor to 4 decimals.)

Answer  
Periodic Cash Flow 
×  p (PV of an Ordinary Annuity)  =  Present Value 
$ 230,000  ×  6.4177  =  $ 1,476,061 
230000*6.4177  
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