Consider an asset that generate a perpetual cash flow of $100,000 every 15 months. The relevant 15

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Consider an asset that generate a perpetual cash flow of $100,000 every 15 months. The relevant 15 months interest rate is 10%.

a). how much would the asset be worth today the first payment occurs in 6.25 years?

b) how much would the asset be worth today if the first payment occurs today?

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: May 02, 2023 07:24 AM

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Consider an asset that generate a perpetual cash flow of $100,000 every 15 months. The relevant 15

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a To calculate the present value of the perpetuity that starts in 625 years we need to discount the ... View the full answer

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