Question: Please help ASAP A constant perpetuity with cash flow, C, will have the first cash flow occur exactly 16 years from now. Each subsequent cash

A constant perpetuity with cash flow, C, will have the first cash flow occur exactly 16 years from now. Each subsequent cash flow will be exactly 5 years after the prior cash flow. You have used the formula, PV=C/r (correctly) to determine a value. The determined value needs to be discounted exactly how many years to get the PV today of the cash flows? The determined value needs to be discounted exactly today of the cash flows. years to get the PV Your brother has offered to give you $135, starting next year, and after that growing at 3.3% per year for the next 20 years. You would like to calculate the value of this offer by calculating how much money you would need to deposit in a local bank so that the amount will generate the same cash flows as he is offering you. Your local bank will guarantee a 5.5% annual interest rate so long as you have money in the account. a. How much money will you need to deposit into the account today? b. Assuming you deposited the amount of money in part (a), and then withdrew the required payments each year, calculate the remaining balance at the end of years 1,2, 10 and 19. (Hint: To solve this problem it is best to use an excel spreadsheet.) a. How much money will you need to deposit into the account today so that the account will generate the same cash flows as he is offering you? The amount of money that you need to deposit is ? (Round to the nearest cent.) b. Assuming you deposited the amount of money in part (a), and then withdrew the required payments each year, calculate the remaining balance at the end of years 1, 2, 10 and 19. (Hint: To solve this problem it is best to use an excel spreadsheet.) The remaining balance at the end of year 1 is $ (Round to the nearest cent.)
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