Question
Compare two assets with cash flows: (a) $11,000 per year for 7 years with each cash flow at the end of the year; (b) a
Compare two assets with cash flows: (a) $11,000 per year for 7 years with each cash flow at
the end of the year; (b) a perpetuity that pays $11,000 forever, but the first cash payment is 12
years from today. Which asset do you choose if the annual interest rate is 4%? Does your
answer change if the interest rate is 9%?
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
9781292016924
