Question
1. An investment will pay you $600 per year for 20 years. If you initially use a discount rate of 10% for the first ten
1. An investment will pay you $600 per year for 20 years. If you initially use a discount rate of 10% for the first ten years but anticipate inflation that will require a 12% rate for the remaining 10 years, what is the value of the investment today?
2. An investment will pay you $500 per year forever with the first payment received 10 years from today. If you use a 10% rate to evaluate investments, how much would you pat for the investment today?
these problems are supposed to be answered using TVM values in the financial calculator? what do i have to input?
1. An investment will pay you $600 per year for 20 years. If you initially use a discount rate of 10% for the first ten years but anticipate inflation that will require a 12% rate for the remaining 10 years, what is the value of the investment today?
2. An investment will pay you $500 per year forever with the first payment received 10 years from today. If you use a 10% rate to evaluate investments, how much would you pat for the investment today?
these problems are supposed to be answered using TVM values in the financial calculator? what do i have to input?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
