a. In general, what is the present value of an annuity of C dollars per period at
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a. In general, what is the present value of an annuity of C dollars per period at a discount rate of r per period? The future value?
b. In general, what is the present value of a perpetuity?
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a The present value PV of an annuity is the current worth of a series of future cash flows where eac...View the full answer
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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Related Video
he present value of an annuity is the current value of future payments from an annuity, given a specified rate of return, or discount rate. The higher the discount rate, the lower the present value of the annuity
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a. In general, what is the present value of an annuity of C dollars per period at a discount rate of r per period? The future value? b. In general, what is the present value of a perpetuity?
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