What is the present value of this investment

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Reference no: EM131081511

1. An investment offers $7,000 per year for 20 years, with the first payment occurring 1 year from now. Assume the required return is 10 percent. What would the value be today?

2. A financial security pays $2 next year, $4 the year after that, then $2, then $4, then $2, and so on forever. If the annual, annual interest rate is 5%, what is the present value of this investment?

Reference no: EM131081511

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