An investment is being evaluated that will provide equivalent annual cash flows of $1,284 starting 1 year

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An investment is being evaluated that will provide equivalent annual cash flows of $1,284 starting 1 year from today, and lasting forever. What is the present value of this cash flow stream if discounted at a rate of 5.35% compounded annually

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Intermediate Microeconomics

ISBN: 978-0393123968

9th edition

Authors: Hal R. Varian

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Posted Date: Apr 22, 2024 05:59 AM

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An investment is being evaluated that will provide equivalent annual cash flows of $1,284 starting 1 year

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Expert Answer:

To calculate the present value of the perpetual cash flow stream we can use the formul... View the full answer

Intermediate Microeconomics

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