# Ms. Cristiana Piccini is valuing an investment that pays her \$27,000 per year for the first ten years, \$35,000 per year for the next ten years, and \$48,000 per year the following ten years (all payments are at the end of each year). If the appropriate annual discount rate is 9 percent, what is the value of the investment to Ms. Cristiana Piccini today?

Question

Ms. Cristiana Piccini is valuing an investment that pays her \$27,000 per year for the first ten years, \$35,000 per year for the next ten years, and \$48,000 per year the following ten years (all payments are at the end of each year). If the appropriate annual discount rate is 9 percent, what is the value of the investment to Ms. Cristiana Piccini today?

Step 1

Calculation of Value of Investment:

Step 2

Excel Workings:

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