Question
An investment offers $8,600 per year for 17 years, with the first payment occurring one year from now. Assume the required return is 9 percent.
An investment offers $8,600 per year for 17 years, with the first payment occurring one year from now. Assume the required return is 9 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 be if the payments occurred for 42 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ What would the value be if the payments occurred for 77 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ 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.) Present value $
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