Need business and finance help to present value of a perpetuity

Anonymous
timer Asked: Nov 22nd, 2015
account_balance_wallet $5

Question Description

What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of year one and then grows at a rate of 5% per year indefinitely? The rate of interest used to discount the cash flows is 13%.

Round to the nearest cent

Tutor Answer

pushpam
School: Boston College

Thank you for the opportunity to help you with your question!

$ 1.05 million .............................................................................................

Please let me know if you need any clarification. I'm always happy to answer your questions.

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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