1.2) You just inherited a trust that will pay you $100,000 per year in perpetuity. However, the first payment will not occur for exactly four more years. Assume an 8 percent annual interest rate. a) Calculate the value of this trust.
1.2) You just inherited a trust that will pay you $100,000 per year in perpetuity. However, the first payment will not occur for exactly four more years. Assume an 8 percent annual interest rate. a) Calculate the value of this trust.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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1.2) You just inherited a trust that will pay you $100,000 per year in perpetuity. However, the first payment will not occur for exactly four more years. Assume an 8 percent annual interest rate.
a) Calculate the value of this trust.
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