Question
A cash flow is a growing annuity for the first 20 years and a simple perpetuity thereafter. The discount rate is 8%. The growth rate
A cash flow is a growing annuity for the first 20 years and a simple perpetuity thereafter.
The discount rate is 8%. The growth rate for the growing annuity portion is 12% and the first cash flow being $1000 received one year from today. All subsequent cash flows are at one year intervals. What is the present value of this cash flow?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Louis C. Gapenski
4th Edition
0030754828, 978-0030754821
