Question
Your financial planner offers you two different investment plans. Plan X is a $15,000 annual perpetuity. Plan Y is a 14-year, $25,000 annual annuity. Both
| Your financial planner offers you two different investment plans. Plan X is a $15,000 annual perpetuity. Plan Y is a 14-year, $25,000 annual annuity. Both plans will make their first payment one year from today. |
| At what discount rate would you be indifferent between these two plans? |
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Applications In Energy Finance
Authors: Christos Floros, Ioannis Chatziantoniou
1st Edition
3030929566, 978-3030929565
