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Taka holds three different investments: the first will provide 150 per year forever; the second will provide 1,000 per year for the next 7 years
Taka holds three different investments: the first will provide 150 per year forever; the second will provide 1,000 per year for the next 7 years (in each case, payments commencing one year from now and continuing annually); and the third will provide 30,000 in five years time. If the constant annual discount rate appropriate to all the payments is 6% per annum, the total present value of the three investments is approximately:
a. 14,100 b. 30,500 c. 21,800 d. 27,300
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