An investment offers $5,900 per year for 15 year If the required return is 6 per

Question

An investment offers $5,900 per year for 15 year

If the required return is 6 percent, what is the value of the investment? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

What would the value be if the payments occurred for 40 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

What would the value be if the payments occurred for 75 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

What would the value be if the payments occurred forever? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

s, with the first payment occurring one year from now

If the required return is 6 percent, what is the value of the investment? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

1) The investment offers PMT of $5,900 for 15 years at 6 percent.

Solving for PV by the formula: -CF0 + CF1/(1 + r)1 +

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