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11. Calculating Perpetuity Values (LOI) The Sutherland Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs

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11. Calculating Perpetuity Values (LOI) The Sutherland Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. If the required return on this investment is 5.8%, how much will you pay for the policy? 12. Calculating Perpetuity Values (L01) In the previous problem, suppose a sales associate told you the policy costs $475,000. At what interest rate would this be a fair deal

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