Question: Please help with the finance question below. Problem 5-4 Calculating Annuity Present Values [LO 1] An investment offers $7,800 per year for 13 years, with
Please help with the finance question below.
Problem 5-4 Calculating Annuity Present Values [LO 1]
| An investment offers $7,800 per year for 13 years, with the first payment occurring 1 year from now. Assume the required return is 8 percent. |
| Requirement 1: |
| What is the value of the investment today? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Present value | $ |
| Requirement 2: |
| What would the value be if the payments occurred for 38 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Present value | $ |
| Requirement 3: |
| What would the value be if the payments occurred for 73 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Present value | $ |
| Requirement 4: |
| What would the value be if the payments occurred forever? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Present value | $ |
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