Question
A perpetuity will pay cash flows of $10,000, in real dollars, every year indefinitely starting next year. If the prevailing nominal interest rate is 4.0%,
A perpetuity will pay cash flows of $10,000, in real dollars, every year indefinitely starting next year. If the prevailing nominal interest rate is 4.0%, and inflation rate is 1.5% (both forever), what is the PV of this perpetuity?
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Finance Budget And Management For Reference Services Routledge Library Editions Library And Information Science
Authors: Ruth A. Fraley, Bill Katz
1st Edition
0367374293, 978-0367374297
