Convo 1-2
February 23, 2021
environment one question
February 23, 2021

Chapter 9: Problem 9.8

What is the present value of a perpetuity of $100 per year if the appropriate discount rate is 7 percent? suppose that interest rates doubled in the economy and the appropriate discount rate is now 14 percent. what would happen to the present value of the perpetuity?


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