Cash Flow Valuations and Net Present Value

You are offered three annuities (these make equal payments over a specific period). Using an annual 3.5% discount rate, calculate each annuity’s price: # price Payments ($/month) Life (yrs.) 1 ? 95 4 2 ? 100 (growing @1.5%/yr.) 4 3 ? 55 (growing @1.5%/yr.) Forever You purchase a machine. It costs $75,000 and will expand […]

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