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Course: BUSINESS FINANCE 1: 10. Calculating Perpetusity Values. Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and

image text in transcribedCourse: BUSINESS FINANCE 1:

10. Calculating Perpetusity Values. Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25,000 per year forever. If the required return on this investment is 7 percent, how much will you pay for the policy? 11. Calculating Perpetuity Values. In the previous problem, suppose Curly's told you the policy costs $400,000. At what interest rate would this be a fair deal

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