Question
A client is considering two possible investments, each pays $10,000 per year (end of year). (timeline not required) A 30-year annuity, 15 percent compounded annually,
A 30-year annuity, 15 percent compounded annually, OR
A perpetuity, 15 percent compounded annually.
Which investment would you recommend and why? (show all calculations)
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
78025915, 978-1259115400, 1259115402, 978-0078025914
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