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PLEASE ANSWER FAST taking a timed test Question 1 6 pts Exercise #1 (6 points) Consider a perpetuity that pays you $50 when the year
PLEASE ANSWER FAST taking a timed test
Question 1 6 pts Exercise #1 (6 points) Consider a perpetuity" that pays you $50 when the year number is even (starting at t=0) and $30 when the year number is odd, (starting at year 1) and lasting forever. The timeline below depicts the first five cash-flows. Assume annual interest rate of 10%, what is the year-O value (i.e. present value) of this perpetuity"? 0 1 2 3 4 5 50 30 50 30 50 30 .. Show formulas and work please! Question 1 6 pts Exercise #1 (6 points) Consider a perpetuity" that pays you $50 when the year number is even (starting at t=0) and $30 when the year number is odd, (starting at year 1) and lasting forever. The timeline below depicts the first five cash-flows. Assume annual interest rate of 10%, what is the year-O value (i.e. present value) of this perpetuity"? 0 1 2 3 4 5 50 30 50 30 50 30 .. Show formulas and work pleaseStep by Step Solution
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