Peter Lynchpin wants to sell you an investment contract that pays equal $12,000 amounts at the end

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Peter Lynchpin wants to sell you an investment contract that pays equal $12,000 amounts at the end of each of the next 20 years. If you require an effective annual return of 9 percent on this investment, how much will you pay for the contract today?

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Essentials Of Corporate Finance

ISBN: 9780073382463

7th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Jun 15, 2019 06:52 AM

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Peter Lynchpin wants to sell you an investment contract that pays equal $12,000 amounts at the end

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The cash flows are an annuity so we can use the ...View the full answer

Essentials Of Corporate Finance

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