An investment is being evaluated that will provide equivalent annual cash flows of $$1,284$ starting $1$ year from today, and lasting forever. What is the present value of this cash flow stream if discounted at a rate of $5\mathrm{.}35\%$ compounded annually?

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An investment is being evaluated that will provide equivalent monthly cash flows of $$192$ starting $1$ month from today, and lasting forever. What is the present value of this cash flow stream if discounted at a rate of $9\mathrm{.}72\%$ compounded monthly? 

 

Enter answer rounded to the nearest dollar.

Answer rating: 100% (QA)

To calculate the present value of perpetual cash flows we can use the pe... View the full answer