ezto.mheducation.com/hm.tpx I Most Visted e Getting Started My USC Aiken-Black,

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ezto.mheducation.com/hm.tpx I Most Visted e Getting Started My USC Aiken-Black, a search The True Story of Poc. connect. BADM 363 Business Finance: Fall 2017 (ALL SECTIONS) FINANCE Chapter 5 Homework (part D instructions help Question 13 fof 13) Save & Exit Submit 13. 100 pons You did not receive full credit for this question in a previous attempt Problem 5-52 Calculating Present Value of a Perpetuity [LO 1 Given an interest rate of 6.7 percent per year, wihat is the value at Year 9 of a perpetual stream of $3,450 payments that begin at Year 177(Do not round intermediate caliculations and round your answer to 2 decimal places, e.g., 32.16.) Present value eBook & Resources Difficulty: 2 Intermediate Section: 5,2 Valuing Level Cash Flows: Arnuities and Perpetuites Worksheet Learning Objective: 05-01 Determine the future Problem 5-52 Calculating Present Value of a Perpetuity [LO 11 and present value of investments with multiple cash flows Prevlous attempt /22/2017

Explanation / Answer

Interest rate 6.7%= 0.067 Perpetual stream $3,450 Perpetuity beginsv at year 17 Present value in year 16=P16 $51,492.537313 (3450/0.067) Value at year 9 =P9= $ 32,703.433893 (51492.54/((1+0.067)^(16-9)) Present value $           32,703.43

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