Solution-Find equal annual positive cash flows

Find equal annual positive cash flows

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You are considering a long-term agricultural project that will require an investment of $45,000 per year for 4 years (beginning year 1) and will generate positive cash flows for 20 years beginning year 11. If a nominal interest rate is 4% per quarter, what equal annual positive cash flows can justify this project? (Hint: Need to find an effective rate per year first)

Reference no: EM133069720

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Find equal annual positive cash flows

Reference no: EM133069720

Reference no: EM133069720

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