Question
An investment offers $8,700 per year for 17 years, with the first payment occurring one year from now. Assume the required return is 11 percent.
An investment offers $8,700 per year for 17 years, with the first payment occurring one year from now. Assume the required return is 11 percent. What is the value of the investment today?
Present Value = $
What would the value be if the payments occurred for 42 years?
Present Value= $
What would the value be if the payments occurred for 77 years?
Present Value= $
What would the value be if the payments occurred forever?
Present Value =$
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk
11th Edition
0324422865, 978-0324422863
