Answer:
$142,640
Explanation:
Given that
Present value of annuity = $474,420
Discount rate = 20%
Useful life = 6
The computation of annual benefits is shown below:-
Present value of annuity = Annual Benefits × Present value of annuity factor(20%,6)
$474,420 = Annual benefits × 3.326
Annual benefits = $474,420 ÷ 3.326
=$142,640
So, for computing the annual benefits we simply applied the above formula.