Question: A1 X V fx. A B C D E F G H UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT Chapter 4 -- Time Value Analysis OUAONE PROBLEM 6

 A1 X V fx. A B C D E F G

A1 X V fx. A B C D E F G H UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT Chapter 4 -- Time Value Analysis OUAONE PROBLEM 6 What is the present value of a perpetuity of $100 per year if the appropriate discount rate is 7 7 percent? Suppose that interest rates doubled in the economy and the appropriate discount rate 8 is now 14 percent. What would happen to the present value of the perpetuity? 9 10 ANSWER 11 12 13 14 15 16

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