Need business and finance help to present value of a perpetuity

Business & Finance
Tutor: None Selected Time limit: 1 Day

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
Nov 22nd, 2015

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.
Nov 22nd, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Nov 22nd, 2015
...
Nov 22nd, 2015
Mar 23rd, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer