The fair rate is 8%. What is 100 per year, forever, worth now?

What is the same 100 per year in number 1 worth if it only lasts for 15 years? 

What if the 100 in number 1 was the past cash flow and we expect it to grow at 5% forever? 

What if we only get the 100 from number 1 once at the end of this year? 

What if it we get the 100 from number 1 once, at the end of ten years? 

If we get the 100 from number 1 each year for ten years and invest each payment in an account that earns 8% how much will be there at the end?

Answer rating: 100% (QA)

1 The present value of receiving 100 per year forever with a discount rate of 8 is PV 100 008 PV 125... View the full answer