You are given the following time line; CFs are at the end of the year. Years: 2 3 4 -on--> CF $s 100 100 100 This is a perpetuity that starts in year 4 end. Calculate the PV of the perpetuity in year-end 3 (begin 4) at the required return: The required return is; 6.00% What is the present value at t = 0?
You are given the following time line; CFs are at the end of the year. Years: 2 3 4 -on--> CF $s 100 100 100 This is a perpetuity that starts in year 4 end. Calculate the PV of the perpetuity in year-end 3 (begin 4) at the required return: The required return is; 6.00% What is the present value at t = 0?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Answers with explanation and excel formulas please
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You are given the following timeline;
CFs are at the end of the year.
Years:
2
3
4
5
-on-->
CF $s
100
100
100
This is a perpetuity that starts in year 4 end.
The required return is;
6.00%
Calculate the PV ofthe perpetuity in year-end 3 (begin 4) at the required return:
What is the present value at t = 0?
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