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JulsSmile [24]
3 years ago
10

What is the present value of a perpetual stream of cash flows that pays ​$8 comma 0008,000 at the end of year one and the annual

cash flows grow at a rate of 44​% per year​ indefinitely, if the appropriate discount rate is 1515​%? What if the appropriate discount rate is 1313​%?
Business
1 answer:
andre [41]3 years ago
8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Cash flows= $8,000

Grow at a rate of 4​% per year​ indefinitely.

We need to find the present value using the following formula:

Present Value= periodic payment/ (i - g)

i= interest rate

g= growth rate

A) Interest rate= 15%

PV= 8,000/ (0.15 - 0.04)= $72,727.27

B) i= 13%

PV= 8,000/ (0.13 - 0.04)= $88,889

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Answer:

Model Y

Explanation:

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Using this formula

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Good name for an online pet store?
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Dure Inc. is an athletic shoe-making company in the United States. It successfully sells the same range of shoes in all its inte
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Answer: Global segmentation

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In the global segmentation process we categorized the or divide the various types of customers into the different types of groups according to their specific interest related to the products and the services in the market.

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5 0
3 years ago
A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, v
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Answer:

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