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Problem 4-13 Calculating Annuity Present Value An Investment offers $5,500 per year for 20 years, with the first payment occurring one year from now a.
Problem 4-13 Calculating Annuity Present Value An Investment offers $5,500 per year for 20 years, with the first payment occurring one year from now a. If the required return is 7 percent, what is the value of the investment today? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) b. What would the value today be if the payments occurred for 45 years? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) c. What would the value today be if the payments occurred for 70 years? (Do not round intermediate calculations and round your answe to 2 decimal places, e.g. 32.16.) d. What would the value today be if the payments occurred forever? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) t 0 ences a Present value b. Present value c. Present value d. Present value aw
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