
Companies aerate earn 8% on an investment that pays $ 120,000 at the end of each of the next 6 years?
. What is the sum business Wringing invested Earn 8% rate of return? Hint: Calculate the present value of an annuity investment
NPV = 120,000 / (1.08) ^ 1 + 120,000 / (1.08) ^ 2 + 120,000 / (1.08) ^ 3 + 120,000 / (1.08) ^ 4 + 120,000 / (1.08) ^ 5 + 120,000 / (1.08) ^ 6 VAN = 111,111 + 102,880 + 95,259 + 88,203 + 81,669 + 75,620 = 554,746 NPV
Retirement Plans & Investments : IRA Contribution Guidelines
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