Suppose that you have inherited a perpetuity that will pay $ 822 each year. Assuming the first payment will occur one year from now and that the annual opportunity cost of capital is 3%, what is the value of this perpetuity today? Round your final answer to two decimals.
Suppose that you have inherited a perpetuity that will pay $ 822 each year. Assuming the first payment will occur one year from now and that the annual opportunity cost of capital is 3%, what is the value of this perpetuity today? Round your final answer to two decimals.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 1QTD
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Transcribed Image Text:Suppose that you have inherited a perpetuity that will pay $ 822 each year. Assuming the first
payment will occur one year from now and that the annual opportunity cost of capital is 3%, what is
the value of this perpetuity today? Round your final answer to two decimals.
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