An investment promises to pay you $8,500 per year starting in 3 years. The cash flow from the investment is expected to
Posted: Sun Jun 05, 2022 7:18 am
An investment promises to pay you $8,500 per year starting in 3
years. The cash flow from the investment is expected to increase by
1% per year forever. If alternative investments of similar risk
earn a return of 10% per year, determine the maximum you would be
willing to pay for this investment today.
years. The cash flow from the investment is expected to increase by
1% per year forever. If alternative investments of similar risk
earn a return of 10% per year, determine the maximum you would be
willing to pay for this investment today.