What is the value of the movie

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1. Tanner owns an investment that is expected to pay him 2,350 dollars per quarter forever with the next payment of 2,350 dollars expected in 3 months from today. The investment has an annual return of 9.08 percent. What is the value of the investment?

2. A movie is expected to produce cash flows of 11,300 dollars per month with the first monthly cash flow expected later today and the last monthly cash flow expected in 8 months from today. The cost of capital for the movie is 20.4 percent per year. What is the value of the movie?

Reference no: EM131873239

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