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Posted by: Annie kavitha
Price Quoted by Student: $3
Posted On: 2010-07-20 01:01:35
 
Question

An investment pays $2,000 per year for 10 years. The payments occur at the end of each year The required rate of return in 12%.


Calculate the value of the investment today. What will be its value if the payments occurred at the beginning of each year?


Find the present value of a perpetuity that pays $2,000 per year and the interest rate is 10%


Solutions
SOLUTION Year Cash flow 1
Price $3
Attachment 1: An investment pays $2,000.xls
Solution Posted By: Annie kavitha    Posted on: 20-07-2010