[Tutor only lecture question a). The remaining question is for homework.]Q4.026. Growing perpetuities Mark Weinstein has been working on an advanced technology in lasereye surgery. His technology will be available in the near term. He anticipates his first annual cashflow from the technology to be $175,000, received two years from today. Subsequent annual cashflows will grow at 3.8 percent in perpetuity. What is the present value of the technology if thediscount rate is 9.7 percent?Q4.028. Annuity Present Value What is the present value of an annuity of $7,300 per year, with thefirst cash flow received 3 years from today and the last one received 30 years from today? Use adiscount rate of 7 percent.Q4.032. Perpetuities Young Pharmaceuticals is considering a drug project the costs $2.75 milliontoday and is expected to generate end-of-year annual cash flow of $273,000 forever. At what discountrate would Young be indifferent between accepting or rejecting the project?étvMacBook ProG Search or type URL$&5789{RYP

Growing annuity: A stream cash flow which grows at a constant growth rate is known as growing…

Q4.026. Growing perpetuities Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $175,000, received two years from today. Subsequent annual cash flows will grow at 3.8 percent in perpetuity. What is the present value of the technology if the discount rate is 9.7 percent?

Q4.026. Growing perpetuities Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $175,000, received two years from today. Subsequent annual cash flows will grow at 3.8 percent in perpetuity. What is the present value of the technology if the discount rate is 9.7 percent?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.12MCP

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Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $177,000, received two years from today. Subsequent annual cash flows will grow at 3.7 percent in perpetuity. What is the present value of the technology if the discount rate is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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