If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first earning is given two years after embarking on such investment  Aside from the annual earnings, an additional $500 is earned every six years. Assuming your interest rate is 10% per year, what is the capitalized worth of your inves

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section: Chapter Questions
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If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first earning is given two years after embarking on such investment  Aside from the annual earnings, an additional $500 is earned every six years. Assuming your interest rate is 10% per year, what is the capitalized worth of your investment.

If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first earning is given two years after embarking on such investment Aside from the annual earnings, an additional $500 is earned every six years. Assuming your interest
rate is 10% per year, what is the capitalized worth of your investment.
Transcribed Image Text:If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first earning is given two years after embarking on such investment Aside from the annual earnings, an additional $500 is earned every six years. Assuming your interest rate is 10% per year, what is the capitalized worth of your investment.
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