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Calculate the present value (pv) of this perpetuity for two

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Suppose you were to receive a perpetual annual payment (perpetuity) of $640 per year. in the following table calculate the present value (PV) of this perpetuity for two different annual rates of discount (i)

Rate of Discount

Present Value (PV)

4%

 ________________

10%

________________

Based on your calculations, the present value of a given income stream is _________ at the higher interest rate.

Reference no: EM13986483

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