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 0.02 annually. If you use adiscount rate of 0.09 for investment products, what is the present value of this growing perpetuity?
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
