Question
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $39,000 per year forever.
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $39,000 per year forever. If the required return on this investment is 5.8 percent, how much will you pay for the policy?(Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Present Value?
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
