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A perpetuity has payments at the end of each four-year period. The first payment at the end of four years is 1. Each subsequent payment is 4 more than the previous payment. It is known that v4=0.79 Calculate the present value of this perpetuity A. $ 30.18 B. $ 86.24 C. $ 60.37 D. $ 24.15 E. $ 75.46

A perpetuity has payments at the end of each four-year period. The first payment at the end of four years is 1. Each subsequent payment is 4 more than the previous payment. It is known that v4=0.79 Calculate the present value of this perpetuity A. $ 30.18 B. $ 86.24 C. $ 60.37 D. $ 24.15 E. $ 75.46

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A perpetuity has payments at the end of each four-year period. The first payment at the end of four years is 1. Each subsequent payment is 4 more than the previous payment. It is known that v4=0.79 Calculate the present value of this perpetuity A. $ 30.18 B. $ 86.24 C. $ 60.37 D. $ 24.15 E. $ 75.46
Transcribed Image Text:A perpetuity has payments at the end of each four-year period. The first payment at the end of four years is 1. Each subsequent payment is 4 more than the previous payment. It is known that v4=0.79 Calculate the present value of this perpetuity A. $ 30.18 B. $ 86.24 C. $ 60.37 D. $ 24.15 E. $ 75.46
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