Question: What discount rate would make you indifferent between receiving $ 3 , 7 5 0 . 0 0 per year forever and $ 5 .

What discount rate would make you indifferent between receiving $3,750.00 per year forever and $5.257.00 per year for 28.00 years? Assume the first payment of both cash flow streams occurs in one year.
Answer format: Percentage Round to: 2 decimal places (Example: 9.24%,% sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
What discount rate would make you indifferent

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!