Cash flows at the end of each period

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1. An investment offers $6000 per year for 23 years, with the first payment occurring 1 year from now. If the required return is 6 percent, what is the value of the investment?

2. How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years? Assume an interest rate of 10% and cash flows at the end of each period.

Reference no: EM131978145

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