Question
(Related to Checkpoint 6.5)(Present value of a growing perpetuity)What is the present value of a perpetual stream of cash flows that pays 7,500 at the
(Related to Checkpoint 6.5)(Present value of a growing perpetuity)What is the present value of a perpetual stream of cash flows that pays 7,500
at the end of year one and the annual cash flows grow at a rate of
4%
per yearindefinitely, if the appropriate discount rate is
12%?
What if the appropriate discount rate is
10%?
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Of Synthetic Finance Three Essays Of Speculative Materialism
Authors: Benjamin Lozano
1st Edition
1138790842, 978-1138790841
