Compute the present value (PV) of an annuity that pays $320 forever if the opportunity cost is

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Compute the present value (PV) of an annuity that pays $320 forever if the opportunity cost is

(a) 4 percent,

(b) 8 percent, and

(c) 10 percent.

Why does the PV decrease as the opportunity cost increases?

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Cfin4 Plus Coursemate Printed Access Card 2014

ISBN: 9781285434544

1st Student Edition

Authors: Scott Besley, Eugene F. Brigham

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