Present discounted values (I): Compute the present discounted value of the following income streams. Assume the interest rate is 3%. 1. S50,000, received 1 year from now. 2. $50,000, received 10 years from now. 3. S100 every year, forever, starting immediately. 4. S100 every year, forever, starting 1 year from now. 5. S100 every year for the next 50 years, starting immediately.

Present discounted values (I): Compute the present discounted value of the following income streams. Assume the interest rate is 3%. 1. S50,000, received 1 year from now. 2. $50,000, received 10 years from now. 3. S100 every year, forever, starting immediately. 4. S100 every year, forever, starting 1 year from now. 5. S100 every year for the next 50 years, starting immediately.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 13PAE

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