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loris [4]
3 years ago
14

alculate the difference between the present value of $200 per year cash payments for the next 40 years and the present value of

$200 per year cash payments in perpetuity. Assume in either case, the first payment occurs one year from today and that the appropriate discount rate is 8%/year. The difference in the present value of these two streams of future cash payments that you calculated equals the present value of cash payments over what period of time?
Business
1 answer:
Pani-rosa [81]3 years ago
8 0

Answer:

Present value of annuity = PV(8%,40,-200,0,0)

Present value of annuity = $2,384.93

Present value of Perpetuity = 200/ 8%

Present value of Perpetuity = 200 / 0.08

Present value of Perpetuity = 2500

The difference between the Present value = $2,500 - $2,384.93 = $115.07

However, both does not equal as time value has to be considered.

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a) crowd sourcing carries fewer risks

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<u>Crowdfunding:</u> The term "crowdfunding" is described as a phenomenon that encompasses the procedure of sourcing funds or money from a specific group of groups of different people.

<u>In the question above, the correct answer is option a.</u>

5 0
3 years ago
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Alina [70]

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4 0
1 year ago
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RideAnS [48]

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I hope this helps!

7 0
2 years ago
Development that considers both current and future needs is referred to as______ development
andrey2020 [161]

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7 0
3 years ago
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nikitadnepr [17]

Answer:

Not enough information

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6 0
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