Question
An investment offers $7,000 per year for 15 years, with the first payment occurring one year from now. If the required return is 6 percent,
An investment offers $7,000 per year for 15 years, with the first payment occurring one year from now.
| If the required return is 6 percent, what is the value of the investment today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Present value | $ |
| What would the value today be if the payments occurred for 40 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Present value | $ |
| What would the value today be if the payments occurred for 75 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Present value | $ |
| What would the value today be if the payments occurred forever? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Present value | $ |
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Financial Performance
Authors: Marc Bertoneche, Rory Knight
1st Edition
0750640111, 978-0750640114
