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need a formula on excel to plug into the cell for these answers. if it specifies a function to use we need to use that
need a formula on excel to plug into the cell for these answers. if it specifies a function to use we need to use that function.
2) A perpetuity is an annuity that is received forever. If I rent my house and at the beginning of each year I receive $14,000, what is the value of this perpetuity? Assume an annual cost of capital of 10 percent. (Hint use the PV function and let the number of periods be large!) Payment Term Rate 14,000 10% 0 3) I now have $250,000 in the bank. At the end of each of the next 20 years, I withdraw $15,000 to live on. If I ean 8 percent per year on my investments, how much money will I have in 20 years? Payment Term Rate 15,000 20 8% 0 4) Tim Duncan is receiving 515 million at the end of each of the next 7 years. He can earn 6 percent per year on his investments. What is the present value of his future revenues? Payment Term Rate Py $ 15,000,000 6% 0
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