Question
2. A) What is the present value of a cash flow stream of $10,000 per year at an interest rate of 6% starting one year
2. A) What is the present value of a cash flow stream of $10,000 per year at an interest rate of 6% starting one year from today and goes on forever? B) What is the present value of a cash flow stream of $10,000 per year starting one year from today that grows at 3% at an interest rate of 6% starting one year from today and goes on forever? C) What is the present value of a cash flow stream of $10,000 per year starting one year from today at an interest rate of 6% for ten years? C-2) What is the future value of the cash flow stream in part C? D) What is the present value of a cash flow stream of $10,000 per year starting one year from today that grows at 3% at an interest rate of 6% for ten years? This problem is good practice of A) PV of a perpetuity, B) PV of a growing perpetuity, C) PV of an annuity, C-2) FV of an annuity, D) PV of a growing annuity.
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Financial Management Principles And Practice
Authors: Timothy Gallagher
6th Edition
1930789157, 978-1930789159
