Question
Your financial planner offers you two different investment plans. Plan X is a $28,000 annual perpetuity. Plan Y is a 13-year, $35,000 annual annuity. Both
| Your financial planner offers you two different investment plans. Plan X is a $28,000 annual perpetuity. Plan Y is a 13-year, $35,000 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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Public Finance
Authors: Harvey Rosen, Ted Gayer
8th Edition
0073511285, 9780073511283
