You are the beneficiary of a trust fund that will start paying you cash flows in five years. The cash flows will be $25,000 per year and will continue for 40 years. If the interest rate is 4% per year, what is the value needed in the trust fund now to fund these cash flows?

You are the beneficiary of a trust fund that will start paying you cash flows in five years. The cash flows will be $25,000 per year and will continue for 40 years. If the interest rate is 4% per year, what is the value needed in the trust fund now to fund these cash flows?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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Hello,

How do i solve this corporate finance question?

Thanks

You are the beneficiary of a trust fund that will start paying you cash flows in five
years. The cash flows will be $25,000 per year and will continue for 40 years. If the
interest rate is 4% per year, what is the value needed in the trust fund now to fund
these cash flows?

Subfield of finance that covers finance theory, regulation, and corporate governance. The goal of a company's finance team is to reduce a company's risk through various risk management techniques, different types of financing requirements and investments.

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