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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Question
Transcribed Image Text:**Present Value Calculation with Growing Cash Flow Stream**
**Problem Statement:**
What is the present value of a cash flow stream of $1,000 per year annually for 14 years that then grows at 2.8 percent per year forever when the discount rate is 12 percent?
*(Round intermediate calculations and final answer to 2 decimal places.)*
**Present Value:**
_____
*To be filled by the student*
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