What is the PV of the perpetuity paying $5 each month, beginning this month, if the monthly interest rate is a constant 0.5 % / month and the cash flows will grow at a rate of 0.1% / month?
What is the PV of the perpetuity paying $5 each month, beginning this month, if the monthly interest rate is a constant 0.5 % / month and the cash flows will grow at a rate of 0.1% / month?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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- What is the PV of the perpetuity paying $5 each month, beginning this month, if the monthly interest rate is a constant 0.5 % / month and the cash flows will grow at a rate of 0.1% / month?
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