Question
You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of
You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.05 annually. If you use adiscount rate of 0.10 for investment products, what is the present value of this growing perpetuity?
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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
