Discuss the present value of the investment


Question:

An investment offers $3,800 per year for 12 years, with the first payment occurring one year from now. If the required return is 10 percent, the present value of the investment is $? If the payments occurred for 39 years, the present value of the investment would be $? If the payments occurred for 79 years, the present value of the investment would be $. If the payments last forever, the present value would be $?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Discuss the present value of the investment
Reference No:- TGS02043867

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)