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Posted on Sep 19, 2024

An investment offers $7,900 per year for 16 years, with the first payment occurring 1 year from now. Assume the required return is 8 percent.

Requirement 1: What is the value of the investment today?

Requirement 2: What would the value be if the payments occurred for 41 years?

Requirement 3: What would the value be if the payments occurred for 76 years?

Requirement 4: What would the value be if the payments occurred forever?

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