What is the value of an investment that pays $75,000 every other year forever, if the first payment occurs one year from today and the discount rate is 7 percent compounded daily? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value today $ 1,034,468.73 What is the value today if the first payment occurs four years from today? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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What is the value of an investment that pays $75,000 every other year forever, if the first
payment occurs one year from today and the discount rate is 7 percent compounded
daily? (Use 365 days a year. Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
Value today
$ 1,034,468.73
What is the value today if the first payment occurs four years from today? (Use 365 days
a year. Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
Value today
Transcribed Image Text:What is the value of an investment that pays $75,000 every other year forever, if the first payment occurs one year from today and the discount rate is 7 percent compounded daily? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value today $ 1,034,468.73 What is the value today if the first payment occurs four years from today? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value today
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