Perpetual Cash Flows
What is the value of an investment that pays $20,000 every other year forever, if the first payment occurs one year from today and the discount rate is 12 percent compounded daily? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value today $ What is the value today if the first payment occurs four years from today? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value today $