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In: Economics

find the equivalent annual annuity of the following series: a project is expected to generate $17111...

find the equivalent annual annuity of the following series: a project is expected to generate $17111 this year (end of year) and is expected to grow every year for 16years by $6098. (note: no units, 4 decimal points, 1% threshold) i=5%

Solutions

Expert Solution

We will find the total present value of the project. After that we calculate the equivalent annuity payment by keeping the total present value to be constant.

The given excel work shows all the required calculations.

We can see that the equivalent annual annuity will be 58835.2938.

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Rahul Sunny answered 8 months ago
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