# Present value of annuity

What is the maximum amount you would pay for an asset that generates an income of $150,000 at the end of each of five years if the opportunity cost using funds of 9%? Explain the concept and the calculations.

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What would you pay

What is the maximum amount you would pay for an asset that generates an income of $150,000 at the end of each of five years if the opportunity ...

#### Solution Summary

The solution discusses the present value of annuity. The maximum amount that you would pay for an asset that generates an income of $150,000 at the end of each of five years if the opportunity cost using funds of 9%.

$2.19