Solution-Annual cash flow associated with the perpetuity

Annual cash flow associated with the perpetuity

Reference no: EM131757900

Please help with this question, urgent.

A perpetuity with the first annual cash flow paid at the beginning of year 4 is equivalent to receiving $100,000 in 15 years time.

Assume that the perpetuity and the lump sum are of equivalent risk and that j2= 11% pa is the appropriate interest rate.

How much is the annual cash flow associated with the perpetuity? (to the nearest dollar)

Reference no: EM131757900

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Annual cash flow associated with the perpetuity

Reference no: EM131757900

Reference no: EM131757900

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