perpetual equivalent annual worth
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Assume you won a worldwide lottery that pays $1.55 million in year 0, $5 million in year 1, and $200,000 in years 5 through 100. Assuming that 100 years is as “long” as infinity, calculate the perpetual equivalent annual worth for years 1 through infinity at an interest rate of 10% per year. (Enter your answer in dollars and not in millions.)
The perpetual equivalent annual worth for years 1 through infinity is $ .
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