An investment promises a series of constant annual $4,000 payments for the next 9 years, with the first payment occurring one year from today. In the year after that, the annual payment is cut in half and continues at the new constant level each year forever. Using a discount rate of 7%, what is today's cash equivalent value for the investment? Enter year answer as a positive number and round to the nearest dollar. Type your answer.....

An investment promises a series of constant annual $4,000 payments for the next 9 years, with the first payment occurring one year from today. In the year after that, the annual payment is cut in half and continues at the new constant level each year forever. Using a discount rate of 7%, what is today's cash equivalent value for the investment? Enter year answer as a positive number and round to the nearest dollar. Type your answer.....

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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