PMT PMT=PV i PV= i PMT PV Xi PV 1+i PMT + PMT Due Due FV FV=PV 1+1" PV= or PV=FV (1+i) iijlm 1. Your company is looking at building a hydroelectric dam. The dam will provide income of $4,000,000 per month indefinitely which you should take to mean 'forever.' Since you have to build the dam before seeing any revenue, the first payment will be in exactly 8 years. (a) Draw the time diagram (3 marks] (b) How much would they be willing to pay today if they want to earn jz = 9.6% on their money? [12 marks, 6 marks for each step] BIE P/Y C/Y N I/Y PV PMT FV Pu=? #8500s, ovo perpetuity build- to Syrs PV. - 7 (b) How much would they be willing to pay today if they want to earn j12 = 9.6% on their money? (12 marks, 6 marks for each step] BIE PAY C/Y N I/Y PV PMT FV 12 12 9.6 BON NA Sood000 12, os 96 7 2. L212 271/ 630,00, ovo