Question
If you were to choose between two investment alternatives: A or B. A pays $4,000 a year for 30 years starting at the end of
If you were to choose between two investment alternatives: A or B. A pays $4,000 a year for 30 years starting at the end of this year. B pays $2,000 a year forever starting at the end of this year. At what interest rate both alternatives A and B would be equivalent to you?
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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
