Compute the present discounted value of the following income streams. Assume the interest rate is 3%. (a)

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Compute the present discounted value of the following income streams. Assume the interest rate is 3%.
(a) $50,000, received 1 year from now.
(b) $50,000, received 10 years from now.
(c) $100 every year, forever, starting immediately.
(d) $100 every year, forever, starting 1 year from now.
(e) $100 every year for the next 50 years, starting immediately.

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Macroeconomics

ISBN: 978-0393603767

4th Edition

Authors: Charles I. Jones

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