Question
An investment offers $7,800 per year for 13 years, with the first payment occurring one year from now. Assume the required return is 8 percent.
An investment offers $7,800 per year for 13 years, with the first payment occurring one year from now. Assume the required return is 8 percent.
a.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.)
b.What would the value be if the payments occurred for 38 years?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)c.What would the value be if the payments occurred for 73 years?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)d.What would the value be if the payments occurred forever?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
A: Present Value?
B. Present Value?
C. Present Value?
D. Present Value?
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Corporate Financial Accounting
Authors: Carl S Warren, James M Reeve, Jonathan Duchac
11th Edition
0538480920, 9780538480925
