Consider an investment which pays $ 3 , 0 0 0 at the end of year 1

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Question:

Consider an investment which pays $

3, 000

at the end of year

1,

6, 000

at the end of year

2,

9, 000

at the end of year

3 .

In year

4,

the investment will pay $

11, 000

and this payment will grow by

1.9 %

each year forever. If the appropriate discount rate is

9 %,

what is this investment worth today?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Mar 16, 2024 04:47 AM

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Consider an investment which pays $ 3 , 0 0 0 at the end of year 1

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To determine the present value of this investment we need to discount each future cash flow back to ... View the full answer

Income Tax Fundamentals 2013

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