Question
An investment is expected to generate cash flows of $20,000 next year (at time t=1), and $10,000 in two years at time t=2. After that,
An investment is expected to generate cash flows of $20,000 next year (at time t=1), and $10,000 in two years at time t=2. After that, the annual cash flows generated by the investment will decrease forever at growth rate of -8% APR compounded annually. What is the present value of this stream of cash flows if r = 10% APR compounded annually?
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Public Finance In A Changing World
Authors: Peter Birch Sorensen
1998th Edition
0333682211, 978-0333682210
