Question
As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The first payment will occur in a year and
As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The first payment will occur in a year and will be for
$25,000.
You will continue receiving monetary awards annually with each award increasing by
4
percent over the previous award, and these monetary awards will continue forever. If the appropriate interest rate is
14
percent, what is the present value of this award?
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
133423824, 978-0133423822
