Chemical Engineering Plant Economics (MCQs)

If an amount R is paid at the end of every year for ‘n’ years, then the net present value of the annuity at an interest rate of i is

  • A. R[((1 + i)n – 1)/i]
  • B. [((1 + i)n – 1)/i(1 + i)n]
  • C. R(1 + i)n
  • D. R/(1 + i)n
Answer: Option B.

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