Question
You win a lawsuit in which the defendant is required to pay you $65,000 per month forever. You can invest the monthly payments at an
You win a lawsuit in which the defendant is required to pay you $65,000 per month forever. You can invest the monthly payments at an interest rate of 0.45%. Instead of monthly annual payments to perpetuity you decided to settle for a lump sum. How much should settle for today?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the present value of the infinite ser...
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
