What discount rate would make you indifferent between receiving $3,515.00 per year forever and $5,920.00 per year for 30.00 years? Assume the first payment of both cash flow streams occurs in one year. Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
What discount rate would make you indifferent between receiving $3,515.00 per year forever and $5,920.00 per year for 30.00 years? Assume the first payment of both cash flow streams occurs in one year. Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
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
Section: Chapter Questions
Problem 1PS
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What discount rate would make you indifferent between recieving $3515.00 per year forever and $5920.00 per year for 30.00 years? Assume the first payment of both cash flow streams occurs in one year. (Answer format: percentage, round to two decimal places)
Transcribed Image Text:What discount rate would make you indifferent between receiving $3,515.00 per year forever and $5,920.00 per year for
30.00 years? Assume the first payment of both cash flow streams occurs in one year.
Submit
Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format
rounded to 4 decimal places (ex: 0.0924))
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