Consider a perpetuity with the first cash flow at the end of year 1. If the...

Consider a perpetuity with the first cash flow at the end of year 1. If the invested funds of the perpetuity could earn 11% per year and the perpetuity paid $467 per year, what is the present value of the perpetuity? (round to the nearest dollar)

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Expert Solution

Present Value of Perpetuity = Perpetuity/Interest Rate = 467/11% = 4245.45 = $4245

jeff jeffy answered 2 years ago

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