The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay
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Question:
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $16,000 per year forever. If the required return on this investment is 8 percent, how much are you willing to pay for the policy? (Do not include the dollar sign ($), and round your answer to two decimal places. (e.g., 123456.45)
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date: