Question

For the following questions, assume an end-of-year cash flow of $250 and a 10% discount rate.
a. What is the present value of a single cash flow?
b. What is the present value of a 5-year annuity?
c. What is the present value of a 10-year annuity?
d. What is the present value of a 100-year annuity?
e. What is the present value of a $250 perpetuity?
f. Do you detect a relationship between the number of periods of an annuity and its resemblance to a perpetuity? Explain.


$1.99
Sales0
Views68
Comments0
  • CreatedMarch 26, 2015
  • Files Included
Post your question
5000