Question
An annuity pays $200 at the end of each period for 10 periods. Set up the CFs in an Excel spreadsheet . The current value
An annuity pays $200 at the end of each period for 10 periods. Set up the CFs in an Excel spreadsheet . The current value of this stream of CFs is $1,544.
What is the implied discount rate? Solve the problem using the following approaches: a. Use trial and error or Goal Seek in Excel (tab Data/What-if-Analysis). b. Use the excel built-in function RATE.
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The Compensation Committee Handbook
Authors: James F. Reda, Stewart Reifler, Michael L. Stevens
4th Edition
1118370619, 978-1118370612
