Question
In 9years you will begin receiving $158 per year in perpetuity from a family trust fund (first payment is exactly 9 years from today). You
In 9years you will begin receiving $158 per year in perpetuity from a family trust fund (first payment is exactly 9 years from today). You have decided to discount these cash flowsat a constant interest rate of 6.3%. What is the present value today of these future cash flows? (Hint: draw a time line to illustrate exactly the cash flows for this problem.)
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Managerial Economics and Business Strategy
Authors: Michael Baye, Jeff Prince
9th edition
9781259896422, 1259290611, 1259896420, 978-1259290619
