Question
You are being offered one of the following presents: A. $300 in perpetuity (1st cash flow in one year) B. $900, 5 years annuity (1st
You are being offered one of the following presents: A. $300 in perpetuity (1st cash flow in one year) B. $900, 5 years annuity (1st cash flow in one year) C. $3,200 in cash today Assuming 9.0% discount rate, which of these presents will you prefer?
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Public Finance
Authors: Harvey Rosen, Robert Guell, Ted Gayer
9th Edition
0073511358, 9780073511351
