What is the value of this project in todays dollars

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You have found a project that will produce an annual income of $125,000 at the end of first year. This annual income will increase by 5 percent annually for 7 years. What is the value of this project in today's dollars if you can earn 12% on your investments? A. approx. 649,106 B. approx. 997,205 C. approx. 113,780 D. approx. 204,106 E. approx. 512,558 Show work Please?

Reference no: EM13950837

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