Question
An investment offers $8,900 per year for 13 years, with the first payment occurring 1 year from now. Assume the required return is 9 percent.
An investment offers $8,900 per year for 13 years, with the first payment occurring 1 year from now. Assume the required return is 9 percent.
| What is the value of the investment today? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimals) |
| What would the value be if the payments occurred for 38 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places) |
| Requirement 3: |
| What would the value be if the payments occurred for 73 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places |
| Requirement 4: |
| What would the value be if the payments occurred forever? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places |
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The Leverage Space Trading Model
Authors: Ralph Vince
1st Edition
0470455950, 978-0470455951
