.A company invests in a project that delivers annual payments of $100 forever! The payments start...

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.A company invests in a project that delivers annual payments of $100 forever! The payments start three years (t=3) from today. Use 5% discount rate. The timeline of the projected cash flows is as follows: H (=0 1=1 (=2 +$100 + t=3 +$100 (=4 +$100 t=5 What is the present value of this investment today? (Hint: The formula we learned in class= 100 will I give you the value of the perpetuity at t-2, not t=0) 0.05 .A company invests in a project that delivers annual payments of $100 forever! The payments start three years (t=3) from today. Use 5% discount rate. The timeline of the projected cash flows is as follows: H (=0 1=1 (=2 +$100 + t=3 +$100 (=4 +$100 t=5 What is the present value of this investment today? (Hint: The formula we learned in class= 100 will I give you the value of the perpetuity at t-2, not t=0) 0.05

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To calculate the present value of the perpetuity we can use the formula PV CF ... View the full answer