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Problem 1 a) b) Cher's golf club resort requires $250,000 for initial membership today. Annual dues are $5,000 a year, paid at year's end and

Problem 1

a)

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b)

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Cher's golf club resort requires $250,000 for initial membership today. Annual dues are $5,000 a year, paid at year's end and expected to grow at 3% annually. How much would you pay today, inclusive for the initial fee and lifetime annual membership, if the required return for the club is 15%? $52,500 $292,916 $302,500 o none of the above

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