Tanner owns an investment that is expected to pay him 4,380 dollars per quarter forever with the next payment of 4,380 dollars expected in 3 months from today. The investment has an annual return of 7.08 percent. What is the value of the investment?

A movie is expected to produce cash flows of 15,800 dollars per month with the first monthly cash flow expected later today and the last monthly cash flow expected in 5 months from today. The cost of capital for the movie is 14.52 percent per year. What is the value of the movie?

Answer rating: 100% (QA)

Tanners Investment To calculate the present value of a perpetuity we can use the formula PV C Where ... View the full answer