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You have an opportunity to purchase a Magic Box. The Magic Box spits out a $50 bill every year on the anniversary of the purchase
You have an opportunity to purchase a Magic Box. The Magic Box spits out a $50 bill every year on the anniversary of the purchase date forever. As an added bonus it also spits out a $100 bill on the purchase date. Your discount rate is 6%. What is the most you would pay for the box? How much would you pay for the Box if it stops working after the 25th payment? Provide a real-world example of a business that closely resembles a Magic Box.
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