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You want to buy an investment instrument that will pay you $3,000 exactly one year from today, after which the annual payments will increase at the rate of 4% per year, forever. If the required annual rate of return is 6%, how much would you pay for such investment today? You want to buy an investment instrument that will pay you $3,000 exactly one year from today, after which the annual payments will increase at the rate of 4% per year, forever. If the required annual rate of return is 6%, how much would you pay for such investment today?
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The first cash flow of 3000 will be received in one y... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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