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Score: 0 of 10 pts 12 of 12 (10 complete) HW Score: 75%, 90 of 120 pts P6-46 (similar to) Question Help (Present value of

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Score: 0 of 10 pts 12 of 12 (10 complete) HW Score: 75%, 90 of 120 pts P6-46 (similar to) Question Help (Present value of a growing perpetuity) As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The first payment will occur in a year and will be for $20,000. You will continue receiving monetary awards annually with each award increasing by 8 percent over the previous award, and these monetary awards will continue forever. If the appropriate interest rate is 11 percent, what is the present value of this award? The present value of the award is $397500. (Round to the nearest cent.) P6-44 (similar to) Question Help (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 $2,500 at the end of year one and the annual cash flows grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 12%? What if the appropriate discount rate is 10%? a. If the appropriate discount rate is 12%, the present value of the growing perpetuity is $32500). (Round to the nearest cont.) Score: 5 of 10 pts 9 of 12 (10 complete) HW Score: 75%, 90 of 120 pts Question Help P6-30 (similar to) (Present value of an annuity due) Determine the present value of an annuity due of $7,000 per year for 8 years discounted back to the present at an annual rate of 8 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 13 percent? a. If the annual discount rate is 8 percent, the present value of the annuity due is $ 43444.59. (Round to the nearest cent.) b. If the annual discount rate is 13 percent, the present value of the annuity due is $1230.77). (Round to the nearest cent.)

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