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end of year 10 L. Assume that you are currently at time 0, and you will receive the first installment of an annual payment of
end of year 10
L. Assume that you are currently at time 0, and you will receive the first installment of an annual payment of $100 in perpetuity at the end of this year. Eight full years from now you will start receiving the first payment of an additional $150 as perpetuity. Then you will receive an annuity of $200 per year for 15 years starting from year 10. If the market interest rate is 12%, what is the combined present value of these payment streams Step by Step Solution
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