Question: 3. a. What is the time zero (or right now) value of a $400 ordinary perpetuity at an interest rate of 7.5 percent? b. What

3. a. What is the time zero (or right now) value of a $400 ordinary perpetuity at an interest rate of 7.5 percent? b. What is the value of the above assuming it is a perpetuity due? That is, the first payment occurs at time zero and continues forever. c. What is the time 0 value of a $400 deferred perpetuity that makes its first payment 4 years from now? Assume a 7.5 percent interest rate

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