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An investment offers $6,100 per year for 15 years, with the first payment occurring one year from now. If the required return is 6%, what is the value of the investment? What would the value be if the payments occurred for 40 years For 75 years. Forever?

Payment per year $6,100 cell(D5)

# of years 15 cell (D6)

REquired rate of return 6% cell (D7)

# of years 40 cell(D8)

# of years 75 cell (D9)

Complete the following analysis. Do not hard code values in your calculations. Your answers should be postive.

Value today with 15 years payment =

Value today with 40 years payments =

Value today with 75 years payments =

Value today of perpetuity =

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92665994

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