Evaluate the net present value of a stream of


Evaluate the net present value of a stream of income:

a) V = $1, 000 per year at an interest rate of 5% in perpetuity

b) V = $1, 000 per year at an interest rate of 12% in perpetuity

c) V = $1, 000, 000 per year at an interest rate of 10% in perpetuity

d) V = $1, 000, 000 per year in perpetuity, but not beginning until year t at an interest rate of 15%

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Financial Management: Evaluate the net present value of a stream of
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