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Please answer question 1 A,B and C Question 1 (1 point) The Tennessee state government will issue a perpetuity to fund infrastructure across the state.
Please answer question 1 A,B and C
Question 1 (1 point) The Tennessee state government will issue a perpetuity to fund infrastructure across the state. The have enough revenue to make payments of up to $200,000 per year. The market interest rate for Tennessee debt is 0.030. How much could they potentially raise? Round to the nearest dollar. Your Answer: Answer You have a business idea that requires an investment of $5,000. It won't make any money immediately, but you expect that you can sell it in 3 years for $7,000. Your personal discount rate is 0.05. What's the NPV of your business idea? Round to the nearest dollar. Your Answer: Answer How much would you be willing to pay for an annuity that pays $125 every six months for 4 years if the appropriate discount rate is 0.10? Round to the nearest dollar. YourStep by Step Solution
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