Question
Suppose you have been offered an investment opportunity that will pay you $500 at the end of every year, starting 1 year from now and
Suppose you have been offered an investment opportunity that will pay you $500 at the end of every year, starting 1 year from now and continuing forever. Assume the relevant discount rate is 6%.
a.Suppose the first cash flow from this investment is 4 years from now; that is, the first payment will be made at the end of fourth year and will continue every year thereafter. How much is this worth to you today?
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
