What is the value of the investment today

Assignment Help Financial Accounting

Reference no: EM13168682

An investment offers $8,800 per year for 14 years, with the first payment occurring 1 year from now. Assume the required return is 12 percent.

Requirement 1:

What is the value of the investment today? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places

Requirement 2:

What would the value be if the payments occurred for 39 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places

Requirement 3:

What would the value be if the payments occurred for 74 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places

Requirement 4:

What would the value be if the payments occurred forever? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places

Reference no: EM13168682

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