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please show calc steps/inputs Chapter 4, Sandbox Problem 14 Using a handheld (5 button) financial calculator, compute the present value of an annuity stream in
please show calc steps/inputs
Chapter 4, Sandbox Problem 14 Using a handheld (5 button) financial calculator, compute the present value of an annuity stream in which the first payment is due in 8 years, and annual payments occur forever. The first payment is $208. Subsequent payments grow at an annual rate of 4.1% per year. Use an effective annual discount rate (EAR) of 8.7% Hint / suggestion: Make sure you draw a good cash flow timeline! This problem is also a two- step problem. In the first step, because a 5- button calculator has neither an infinity-button nor a g-button, you'll have to use the perpetuity equation from chapter 2. Then, in the second step you'll need to move the value from Step 1 several periods to the left, to get a value at t= 0. Enter your answer as a positive value in dollars and cents. u Answered rect Answer 2,521.73 margin of error +/- 1% s Step by Step Solution
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