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(CHAPTER 6) Eternity Investments is selling a contract that pays $2,500 at the end of each year indefinitely. If the appropriate discount rate is 11%,
(CHAPTER 6) Eternity Investments is selling a contract that pays $2,500 at the end of each year indefinitely. If the appropriate discount rate is 11%, how much should this contract sell for today? In the problem above, we are dealing with (Pick the number that correspond to the correct answer from the list below.) #1 #2 #1 ...single cash flow #2 ...annuity #3 0.0044 2,252.25 22,727.27 25,227.27 #3 ...perpetuity In the problem above, we need to solve for... .(Pick the number that correspond to the correct answer from the list below.) #1 ...Future Value (FV) #2 | ... Present Value (PV) #3 ...payment amount (PMT) In the problem above, my numerical answer is $ v. (Round your final answer to TWO decimal places: for example, 10,000.23.)
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