Question
Netflix has decided to issue a perpetual membership (never ends). If Netflix charges $9 per month for its standard membership, how much should Netflix charge,
Netflix has decided to issue a perpetual membership (never ends). If Netflix charges $9 per month for its standard membership, how much should Netflix charge, in a one-time upfront payment, for the perpetual membership? The APR is 7%
(Answer: PV = $1,542.86....... please explain why)
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
