(a) Calculate the perpetual equivalent annual worth in future dollars for years 1 through for income...
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(a) Calculate the perpetual equivalent annual worth in future dollars for years 1 through ∞ for income of $50,000 now and $5000 per year thereafter. Assume the market interest rate is 8% per year and inflation averages 4% per year. All amounts are quoted as future dollars.
(b) If the amounts had been quoted in CV dollars, what is the annual worth in future dollars?
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a Use i f market interest rate to find AW AW 500000...View the full answer
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