You are valuing an investment that will pay you $26,000 per year for the first 9 years, $34,000 per year for the next 11 years, and $47,000 per year the following 14 years (all payments are at the end of each year).  Another similar risk investment alternative is an account with a quoted annual  interest rate of 9.00% with monthly compounding of interest.  What is the value in today's dollars of the set of cash flows you have been offered?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
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You are valuing an investment that will pay you $26,000 per year for the first 9 years, $34,000 per year for the next 11 years, and $47,000 per year the following 14 years (all payments are at the end of each year).  Another similar risk investment alternative is an account with a quoted annual  interest rate of 9.00% with monthly compounding of interest.  What is the value in today's dollars of the set of cash flows you have been offered? 

 

 

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