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Author Question: You are offered an investment that will pay you the cash flows shown in the table. The first cash ... (Read 23 times)

jon_i

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on: Apr 25, 2021

Question 1

You are offered a perpetuity that will pay you $18,000 per year starting in one year. The seller wants you to pay $300,000 for the perpetuity. If you buy it at that price, what return will you earn?
◦ 6%
◦ 5%
◦ 7%
◦ 8%
◦ 9%

Question 2

You are offered an investment that will pay you the cash flows shown in the table. The first cash flow occurs in one year. The cost of the investment is $1,086.59 (today). What is the return on the investment?

YearCash Flow
1$70
2$70
3$70
4$70
5$1,070

◦ 5%
◦ 7%
◦ 9%
◦ 11%
◦ 13%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by jon_i on Apr 25, 2021

jjorrostieta

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jon_i

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Reply 2 on: Apr 25, 2021
Excellent

31809pancho

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Reply 3 on: Yesterday
Wow, this really help

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