Question
A pine plantation returns nothing to its owner in the first3years.In the following2years,the returns are$100,000(year4)and$150,000(year5),respectively,and then the return is$200,000per year perpetuity.The returns can be invested
A pine plantation returnsnothingto its owner in the first3years.In the following2years,the returns are$100,000(year4)and$150,000(year5),respectively,and then the return is$200,000per year perpetuity.The returns can be invested at8%per annum.What isthe present value to the owner(the valuein year 0)?
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
