You have just received a windfall from an investment you made in a friends business. She will

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You have just received a windfall from an investment you made in a friend’s business.

She will be paying you $22,012 at the end of this year, $44,024 at the end of next year, and $66,036 at the end of the year after that (three years from today). The interest rate is 3.9% per year.

a. What is the present value of your windfall?

b. What is the future value of your windfall in three years (on the date of the last payment)?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 27, 2024 03:07 AM

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You have just received a windfall from an investment you made in a friends business. She will

Question:

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To calculate the present value and future value of the windfall we can use the formulas for present ...View the full answer

Fundamentals Of Corporate Finance

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