Question
In: Finance
Assume the appropriate discount rate is 6%. What is the value 6 years from today of...
Assume the appropriate discount rate is 6%. What is the value 6 years from today of a perpetual stream of $3,000 payments that begins 7 years from today? Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.
Solutions
Expert Solution
Value of perpetuity 6 year from today whose payment started at the beginning of 7th year = payment/discount rate
= 3000/.06
= $50000
jeff jeffy answered 1 year agoRelated Solutions
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