Question
Your financial planner offers you two different investment plans. Plan X is a $22,000 annual perpetuity. Plan Y is a 11-year, $29,000 annual annuity. Both
Your financial planner offers you two different investment plans. Plan X is a $22,000 annual perpetuity. Plan Y is a 11-year, $29,000 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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Financial Management For Farmers And Rural Managers
Authors: Martyn Warren
4th Edition
0632048719, 9780632048717
