What discount rate would you be indifferent between

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Question: Your financial planner offers you two different investment plans. Plan X is an annual perpetuity of $35,000 per year. Plan Y is an annuity for 15 years with an annual payment of $47,000. Both plans will make their first payment one year from today. At what discount rate would you be indifferent between these two plans? (HINT: You will be indifferent when you would pay the same amount for either plan).

Reference no: EM133326739

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