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QUESTION
I need help understanding these 2 problems! What is the present value of a perpetual stream of annual cash flows of $100, with the first cash flow to...
I need help understanding these 2 problems!
- What is the present value of a perpetual stream of annual cash flows of $100, with the first cash flow to be received in one year, assuming a discount rate of 8%?
- What is the present value of a perpetual stream of annual cash flows, with the first cash flow of $100 to be received in one year, and with all subsequent cash flows growing at a rate of 3%, assuming a discount rate of 8%?
