If the required rate of return is 10%, then the 2-year annuity factor can be calculated as 1.7355.
What is the 2-year annuity factor?
The 2-year present value annuity factor can be found by using the formula for the present value of an annuity.
This is:
= Amount x ( 1 - (1 + rate) ^ - number of periods ) / rate
Replace the amount with 1 when calculating for factor:
= 1 x ( 1 - (1 + 10%)⁻²) / 10%
= 1 x 0.173553719 / 10%
= 1.7355
Find out more on annuity factors at https://brainly.com/question/26527156.
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