Question
You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $20,000 at the end of
You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $20,000 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 0.10 for investment products, what is the present value of this growing perpetuity? Round to two decimal places.
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
