Question

In: Finance

What is the present value of $10,000 per year in perpetuity at an annual interest rate of 10 percent if the perpetuity starts in year=4?

What is the present value of $10,000 per year in perpetuity at an annual interest rate of 10 percent if the perpetuity starts in year=4? 


$10,000 

$75,131.48 

$1,000 

$68,301.35 

$82,402.36

Solutions

Expert Solution

PV (at Yr0) = $75,131.48


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