Question
How much would you be willing to pay for a perpetuity that paid a $50 annual payment this morning, and keeps growing at 3% per
How much would you be willing to pay for a perpetuity that paid a $50 annual payment this morning, and keeps growing at 3% per year, forever? Assume that you can borrow from the bank at a 10% interest rate compounded annually.
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
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