Question: Find the above attached question and give the answer properly. 1. An investor expects a perpetual sum of 40,000 annually from her investment on a

Find the above attached question and give the answer properly.
1. An investor expects a perpetual sum of 40,000 annually from her investment on a scheme. However, the cash flow will start from the fifth year onward. What is the present value of such stream of payments if interest rate is 8% per annum? Marks: 2
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Given Data Annual perpetual cash flow C 40000 Interest rate r 8 per ann... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
