you are planning to buy 2 securities the first makes equal annual payments of $15,000 per year for ever with the first payment received 18 years from today. The second makes equal annual payments of $5,000 forever with the first payment received 8 years from today. How much would you have to pay for this security today if you plan to make one payment today and another payment of $20,000 3 years from today. Assume the interest rate is currently 12%

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...
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you are planning to buy 2 securities the first makes equal annual payments of $15,000 per year for ever with the first payment received 18 years from today. The second makes equal annual payments of $5,000 forever with the first payment received 8 years from today. How much would you have to pay for this security today if you plan to make one payment today and another payment of $20,000 3 years from today. Assume the interest rate is currently 12%

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