You have a perpetuity that pays you 10000 per year the tv


You have a perpetuity that pays you $10000 per year. The TV advertisement says you can sell this income for "CASH TODAY". they offer you $77,000 for your perpetuity. What is the cost of capital this potential purchaser is applying to the proposed transaction?

Request for Solution File

Ask an Expert for Answer!!
Other Subject: You have a perpetuity that pays you 10000 per year the tv
Reference No:- TGS0599417

Expected delivery within 24 Hours