What is the relationship between the present value and time

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What is the value today of a 10,000 payment made in perpetuity assuming a 8% discount rate?
Assume the same perpetuity as above but the payments will not begin for another 5 years. What is the present value of such a perpetuity?
What is the relationship between the present value and time? Explain.
What is the relationship between present value and the discount rate? Explain.
Please show how you got the answers.

Reference no: EM13263972

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