2. A friend who owns a perpetuity that promises to pay $2,000 at the end of eachyear, forever, comes to you and offers to give you the payments to be received fromthe 10th year through 30th year. How much would you pay for it when the interestrate is 10%?

The present value includes the amount that is equivalent today the future value of cash flow…

A friend who owns a perpetuity that promises to pay $2,000 at the forever, comes to you and offers to give you the payments to be re 10th year through 30th year. How much would you pay for it when 1 00 2

A friend who owns a perpetuity that promises to pay $2,000 at the forever, comes to you and offers to give you the payments to be re 10th year through 30th year. How much would you pay for it when 1 00 2

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 16PROB

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2. A friend who owns a perpetuity that promises to pay $2,000 at the end of each
year, forever, comes to you and offers to give you the payments to be received from
the 10th year through 30th year. How much would you pay for it when the interest
rate is 10%?

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