Calculating annuity present values an investment offers


Question: Calculating Annuity Present Values. An investment offers $5,450 per year for 15 years, with the first payment occurring one year from now. If the required return is 8 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Calculating annuity present values an investment offers
Reference No:- TGS02523682

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)