An investment of 50,000 now is expected to generate equal annual cash flows to perpetuity of 7,500
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Question:
An investment of £50,000 now is expected to generate equal annual cash flows to perpetuity of £7,500 per annum, commencing at the end of the year. If the annual discount rate is 4.5%, what is the net present value of the investment (to the nearest £10)?
Expert Answer:
e can use the formula for the present value of a perpetuity to calculate the present value of the ... View the full answer
Related Book For 
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
