If an investment offers the following year-end cash flows:
1 $20,000
2 $15,000
3 $10,000
Using a 8% interest rate, convert this series of irregular cash flows to an equivalent (in present value terms) 3 year annuity. What would be the annuity amount per year?
$13,068.03
$12,758.31
$10,999.63
$15256.28