3)Suppose that a stream of equal payments of amount $25000 per year is to continue in perpetuity. At the interest rate of 10% compute: a. the present value of this entire stream of benefits. b. the present value of the benefits beginning at the end of the 100th year. c. the present value of the first 100 years of benefits.

3)Suppose that a stream of equal payments of amount $25000 per year is to continue in perpetuity. At the interest rate of 10% compute: a. the present value of this entire stream of benefits. b. the present value of the benefits beginning at the end of the 100th year. c. the present value of the first 100 years of benefits.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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