Question: please answer carefully other wise I will give downvote The present value of a perpetuity is equal to the payment on the annuity, PMT, divided

please answer carefully other wise I will give downvote

please answer carefully other wise I will give

The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by the interest rate, l:. What is the future value of a perpetuity of PMT dollars per year? (Hint: The answer is infinity, but explain why.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

sell (birthdate February 2, 1970) and Linda (birthdate August 30, 1975) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and...

Q:

please answer carefully other wise I will give downvote The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by the interest rate, l:. What is the future value of a...

Q:

please answer carefully other wise I will give downvote The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by the interest rate, l:. What is the future value of a...

Q:

please answer carefully other wise I will give downvote The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by the interest rate, l:. What is the future value of a...

Q:

please answer carefully other wise I will give downvote 9. Purchasing shares at Dubai Financial Market is an example of: A. a primary market transaction B. companies raising finance from another...

Q:

please answer carefully other wise I will give downvote 9. Purchasing shares at Dubai Financial Market is an example of: A. a primary market transaction B. companies raising finance from another...

Q:

please answer carefully other wise I will give downvote 9. Purchasing shares at Dubai Financial Market is an example of: A. a primary market transaction B. companies raising finance from another...

Q:

please answer carefully other wise I will give downvote 9. Purchasing shares at Dubai Financial Market is an example of: A. a primary market transaction B. companies raising finance from another...

Q:

please answer 5-6 ity. True or false? Explain. 5-6 The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by the interest rate, 1: PV - PMT/L. What is the future value...

Q:

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

Q:

uestion: 1. IN A STOCK ACQUISITION ACCOUNTED FOR BY THE EQUITY METHOD, A PORTION OF THE PURCHASE PRICE OFTEN IS ATTRIBUTABLE TO GOODWILL OR TO SPECIFIC ASSETS OR LIABILITIES. HOW OR UNDER WHAT BASIS...

Q:

In your experience, explain whether you feel brand positioning affects how you, as a consumer, perceive a product? Explain why ? Share an experience with a product or service that demonstrates your...

Q:

Sherwood, Inc. makes pet crates. In the first four months of the coming year, Sherwood expects the following unit sales: January .....30,000 February ...29,000 March .......31,000 April ......34,000...

Q:

State Income Tax is always calcuated in the same manner as Federal Income tax. Group of answer choices True False

Q:

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...