What is the CW, when i = 10% per year, of $1,500 per year, starting in year one and continuing forever; and $10,000 in year five, repeating every four years thereafter, and continuing forever? When i 10% per year in this type of problem, what value of N, practically speaking, defines "forever"?

What is the CW, when i = 10% per year, of $1,500 per year, starting in year one and continuing forever; and $10,000 in year five, repeating every four years thereafter, and continuing forever? When i 10% per year in this type of problem, what value of 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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WRITTEN BY HAND SOLUTION IS NEEDED PLEASE.

Problem 5-16
a
What is the CW, when i = 10% per year, of $1,500 per
year, starting in year one and continuing forever; and
$10,000 in year five, repeating every four years
thereafter, and continuing forever?
b
When i = 10% per year in this type of problem, what
value of N, practically speaking, defines "forever"?

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