Question
Harder) Starting in year 10, a perpetuity pays $10, and then the payment grows at 10% per year forever (i.e. $11 in year 11, $12.1
Harder) Starting in year 10, a perpetuity pays $10, and then the payment
grows at 10% per year forever (i.e. $11 in year 11, $12.1 in year 12...).
The annual discount rate is 12%.
What is the present value today (year 0) of the
perpetuity?
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
25th edition
978-1285069609, 1285069609, 978-1133607601
