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Financial Management: Theory & Practice

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 26SP

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2. Find All four present values

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An investment offers $8,900 per year for 14 years, with the first payment occurring one
year from now. Assume the required return is 9 percent.
a. What is the value of the investment today? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
b. What would the value be if the payments occurred for 39 years? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g.., 32.16.)
c. Wha
would the value be if the payments occurred for 74 years? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
d. What would the value be if the payments occurred forever? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a.
Present value
b.
Present value
C.
Present value
d.
Present value
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