Question: An investor is hesitating between two projects. The first will yield steady returns of X every 6 months for 10 years. The second will return
An investor is hesitating between two projects. The first will yield steady returns of X every 6 months for 10 years. The second will return 1000 per month for 5 years, then will yield 500 per month in perpetuity. If the effective annual rate is 10%, for what X would the investor be indifferent between the two projects ?
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