Question
In: Finance
supposed to touch water authority wanted to raise money by selling perpetuities of $111 per year...
supposed to touch water authority wanted to raise money by selling
perpetuities of $111 per year with the first cash flow paid in one
year from today if the appropriate discount rate is 6.6% what would
you be willing to pay today for this perpetuity rounf to the
nearest cent
Solutions
Expert Solution
Present Value of a perpetuity = Annual payment / Discount rate
Present Value of a perpetuity = $111 / 0.066
Present Value of a perpetuity = $1,681.82
jeff jeffy answered 2 years agoRelated Solutions
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