Question
An investment offers $9,600 per year for 16 years, with the first payment occurring one year from now. Assume the required return is 12 percent.
An investment offers $9,600 per year for 16 years, with the first payment occurring one year from now. Assume the required return is 12 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 41 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 76 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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