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Question
You are currently at time period 0, and you will receive the first payment on an annual payment annuity of $100 in perpetuity at the end of this year. Six full years from now you will receive the first payment on an additional $150 in perpetuity, and at the end of time period 10 you will receive the first payment on an additional $200 in perpetuity. If you require a 10 percent rate of return, what is the combined present value of these three perpetuities?
a. $2,349.50
b. $2,526.85
c. $2,685.42
d. $2,779.58
e. $2,975.40
Answer
This answer is hidden. It contains 490 characters.
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