Question: Tomas is hesitating between two projects. The first will yield steady returns of X every 6 months for the first 10 years and X every

Tomas is hesitating between two projects. The first will yield steady

returns of X every 6 months for the first 10 years and X every year

after. The second will return 1000 per month for 5 years, then will

yield 1000 per year in perpetuity. If the effective annual rate is 10%,

for what X would Tomas be indifferent between the two projects?

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