Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the present value of a perpetuity, with the first

The present value of a perpetuity, with the first cash flow paid in 5 years’ time,...

80.2K

Verified Solution

Question

Finance

The present value of a perpetuity, with the first cash flow paidin 5 years’ time, is equivalent to the present value of $150,000that is to be paid in 14 years’ time. The perpetuity and the lumpsum have a required rate of return of 10%. What is the annual cashflow associated with the perpetuity?

a.

6,361.46

b.

5,783.15

c.

6,997.61

d.

7697.37

e.

None of above

Answer & Explanation Solved by verified expert
4.2 Ratings (615 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1 point Find the line integral of F x y z x i y j...

Calculus
Q

Study Designs - Part 1 INSTRUCTIONS: In working through these questions, take time in designing your study...

Biology
Q

b 3C Create a quadratic function expressed in Factored Form Use the process you described...

Geometry
Q

sabel is a very determined 4th grader who studies different neighborhoods each year to determine...

Statistics
Q

Solve the equation for solutions in the interval 0 2x by first solving for the...

Calculus
Q

Definite integrals from graphs Figure shows the graph of a tion f with the areas...

Calculus
Q

Question 1 Suppose we are building a ramp for wheelchair access to an outdoor eating...

Algebra
Q

Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 88-Hx are as...

Accounting
Q

Exercise 4-12 (Algo) Record transactions and adjustments LO 4-2, 4-6, 4-7 Record the effect, if...

Accounting
Q

Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely...

Accounting
Q

1. A company entered into the following transactions concerning its computer system: On January 1,...

Accounting
Q

Chapter 11 Page 428 Problem P8 Time and materials pricing in a Service Business Route...

Accounting