You are valuing an investment that will pay you $25,000 per year for the first 7 years, $29,000 per year for the next 12 years, and $55,000 per year the following 15 years (all payments are at the end of each year). If the appropriate annual discount rate is 13.00%, what is the value of the investment to you today? $858.868.32

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 $25,000 per year for the first 7 years,
$29,000 per year for the next 12 years, and $55,000 per year the following 15 years
(all payments are at the end of each year). If the appropriate annual discount rate is
13.00%, what is the value of the investment to you today?
$858,868.32
$169,866.63
O $1,348,000.00
$218,365.63
$1,500,593.60
Transcribed Image Text:You are valuing an investment that will pay you $25,000 per year for the first 7 years, $29,000 per year for the next 12 years, and $55,000 per year the following 15 years (all payments are at the end of each year). If the appropriate annual discount rate is 13.00%, what is the value of the investment to you today? $858,868.32 $169,866.63 O $1,348,000.00 $218,365.63 $1,500,593.60
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