A small company plans to spend $10,000 in year 2and
Chapter 4, Problem 4.79(choose chapter or problem)
A small company plans to spend $10,000 in year 2and $10,000 in year 5. At an interest rate of effective10% per year, compounded semiannually, the equationthat represents the equivalent annual worth inyears 1 through 5 is:(a) A = 10,000(PF10%,2)(AP,10%,5)+ 10,000(AF,10%,5)(b) A = 10,000(AP,10%,4) + 10,000(AF,10%,5)(c) A = 10,000(PF,5%,2)(AP,5%,10)+ 10,000 (AF,5%,10)(d) A = [10,000(FP,10%,5) + 10,000](AF,10%,5)
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