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Assuming a 7.1% annually compounded discount rate, what is the present value of a $124,984.48 payment...

Assuming a 7.1% annually compounded discount rate, what is the present value of a $124,984.48 payment which is received once per year inperpetuity?    

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Answer #1

Ans $ 1760344.79

Assuming a 7.1% annually compounded discount rate, the present value of a $124,984.48 payment which is received once per year inperpetuity is $ 1760344.79

Present value of perpetuity = Annual Payment / Discount rate

                                       = 124984.48 / 7.1%

                                       = 1760344.79

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