4. 73. Break-even investment returns [LO 6.4] Your financial planner offers you two different investment plans. Plan

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4. 73.

Break-even investment returns [LO 6.4] Your financial planner offers you two different investment plans. Plan X is an annual perpetuity of $35 000 per year. Plan Y is an annuity for 15 years and an annual payment of $47 000. Both plans will make their first payment one year from today. At what discount rate would you be indifferent between these two plans?

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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