Question
What is the present value of a perpetual cash flows of $300 per year growing at the rate of 4% if you receive your first
What is the present value of a perpetual cash flows of $300 per year growing at the rate of 4% if you receive your first cash flow at year 5 and the annual interest rate is 8%?
a. $5104.37
b. $5,512.72
c. $6,411.11
d. $7,500.00
Answer is b. $5,512.72
can someone write down the steps
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Cornerstones Of Financial Accounting
Authors: Bertrand Piccard, Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen, Nick Jones
1st Edition
0324657730, 9780324657739
