You own two annuity investments Investment 1 Starting 3 years from today, you will receive $1,000 p a for 10 years Investment 2 Starting 2 years from today, you will receive $800 every year forever Please value each investmentusing PV approach Use a discount rate of 10 Which investment is the best ...

To value the two annuity investments using the present value PV approach with a discount rate of 10 ...

You own two annuity investments: Investment 1: Starting 3 years from today, you will receive $1,000

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You own two annuity investments:

Investment 1: Starting 3 years from today, you will receive $1,000 p.a. for 10 years.
Investment 2: Starting 2 years from today, you will receive $800 every year forever

Please value each investment using PV approach. Use a discount rate of 10%.

Which investment is the best and why?

Related Book For answer-question

Personal Financial Planning

ISBN: 9780357438480

15th Edition

Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk

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Posted Date: Apr 20, 2023 12:04 AM

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You own two annuity investments: Investment 1: Starting 3 years from today, you will receive $1,000

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Personal Financial Planning

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