At what discount rate would you be indifferent

Reference no: EM13294887

Your financial planner offers you two different investment plans. Plan X is a $17,000 annual perpetuity. Plan Y is a 16-year, $27,000 annual annuity. Both plans will make their first payment one year from today.

At what discount rate would you be indifferent between these two plans?

Reference no: EM13294887

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