An investment will generate cash flows of exist 1000 every


An investment will generate cash flows of exist 1,000 every other year, forever. The first cash flow will be received one year from today.

a) If the required return is 6% per year, compounded annually, what is the value of this investment, today?

b) If the required return is 6% per year, compounded semi-annually, what is the value of this investment, today?

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Financial Management: An investment will generate cash flows of exist 1000 every
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