hat is the present value of a cash flow stream of 1,000 per year annually for 12 years that then grows at 4.6% per year forever

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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What is the present value of a cash flow stream of 1,000 per year annually for 12 years that then grows at 4.6% per year forever 

 

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What is the present value of a cash flow stream of $1,000 per year annually for 12 years that then grows at 4.6 percent per year forever
when the discount rate is 13 percent?
Note: Round intermediate calculations and final answer to 2 decimal places.
Book
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erences
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Present value
ere to search
$ 8,790.48
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Transcribed Image Text:3 What is the present value of a cash flow stream of $1,000 per year annually for 12 years that then grows at 4.6 percent per year forever when the discount rate is 13 percent? Note: Round intermediate calculations and final answer to 2 decimal places. Book Ask erences ~ Present value ere to search $ 8,790.48 ** You received no credit for this question in the previous attempt O (99+ < Prev O 3 of 8 Chop Next > 3 View previous attempt ← 71°F Partly sunny Check B
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