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I am interested in buying into an annuity that will return me the following cashflows: At the end of the first year, I will receive
I am interested in buying into an annuity that will return me the following cashflows:
At the end of the first year, I will receive $
At the end of the second year, I will receive $
At the end of the third year, I will receive $
At the end of the fourth year, I will receive $
At the end of the fifth year, I will receive $
It will cost me $ today to buy into the annuity. Assuming a discount rate of what is the NPV of this potential investment?
Question options:
None of these
$
$
$
$
$
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