How to solve: If the interest rate is 8%, how much must be set aside today to
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If the interest rate is 8%, how much must be set aside today to provide the following end-of-year salary payment alternatives?
a. $100,000 per year for 25 years
b. $100,000 per year in perpetuity
c. A perpetuity that pays $100,000 the first year and grows at 4% every year thereafter
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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