You are considering an investment that will pay you annual payments of $ 2 , 5 0

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Question:

You are considering an investment that will pay you annual payments of $

2, 500

for ever but will never return your principle. If the prevailing interest rate is

4 %

what would a fair price be for the investment?

Related Book For answer-question

Contemporary Engineering Economics

ISBN: 978-0136118480

5th edition

Authors: Chan S. Park

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Posted Date: Feb 27, 2024 12:32 AM

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You are considering an investment that will pay you annual payments of $ 2 , 5 0

Question:

Expert Answer:

To calculate the fair price for the investment we can use the perpetuity formul... View the full answer

Contemporary Engineering Economics

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