Ledesma Corp. developed a product that will provide zero cash flow at the end of Years 1 and 2, and a cash inflow of $250,000 per year forever, beginning at the end of Year 3. At a discount rate of 18%, what is the present value of the product? $1,288, 889 $4845,321 $ 543,568 ion $997, 478 $1.177.024

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Ledesma Corp. developed a product that will provide zero cash flow at the end of Years 1
and 2, and a cash inflow of $250,000 per year forever, beginning at the end of Year 3. At a
discount rate of 18%, what is the present value of the product? $1,288,889 $4845,321 $
543,568 ion $997, 478 $1.177.024
Transcribed Image Text:Ledesma Corp. developed a product that will provide zero cash flow at the end of Years 1 and 2, and a cash inflow of $250,000 per year forever, beginning at the end of Year 3. At a discount rate of 18%, what is the present value of the product? $1,288,889 $4845,321 $ 543,568 ion $997, 478 $1.177.024
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