An investment offers $12,000 per year for 20 years, with the first payment occurring one year from now. If the required return is 11 percent, what is the value of the investment? What would the value be if the payments occurred for 35 years? For 60 years? Forever?
An investment offers $12,000 per year for 20 years, with the first payment occurring one year from now. If the required return is 11 percent, what is the value of the investment? What would the value be if the payments occurred for 35 years? For 60 years? Forever?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
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