A property is being valued as if it will yield a perpetual annual stream of profits, starting 2 years from today with $36,000, and then growing each year at a rate of 1% APR compounded annually. What is the present value of these profits if the discount rate is 5.2% APR compounded annually? A) 812235 B) 814775 C) 815554 D) 816327
A property is being valued as if it will yield a perpetual annual stream of profits, starting 2 years from today with $36,000, and then growing each year at a rate of 1% APR compounded annually. What is the present value of these profits if the discount rate is 5.2% APR compounded annually? A) 812235 B) 814775 C) 815554 D) 816327
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.13E
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A property is being valued as if it will yield a perpetual annual stream of profits, starting 2 years from today with $36,000, and then growing each year at a rate of 1% APR compounded annually. What is the present value of these profits if the discount rate is 5.2% APR compounded annually?
A) 812235
B) 814775
C) 815554
D) 816327
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