a. What is the CW, when i= 11% per year, of $1,800 per year, starting in year one and continuing forever; and $9,400 in year seven,repeating every six years thereafter, and continuing forever?b. When i = 11% per year in this type of problem, what value of N, practically speaking, defines "forever"?

Answered: N practically speaking defines…

Business

Finance

N practically speaking defines "forever!

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 15PROB

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a. What is the CW, when i= 11% per year, of $1,800 per year, starting in year one and continuing forever; and $9,400 in year seven,
repeating every six years thereafter, and continuing forever?
b. When i = 11% per year in this type of problem, what value of N, practically speaking, defines "forever"?

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