FIN 675 A Corporate Financial Strategy HW Problem – PV of a Growing Series (#2) Find the PV (today's value of the following series of end-of-year cash flows (CF's) using a discount rate of 8 percent compounded continuously (r = 8%, c=00): [Note that the first CF does not occur until the end of year 6.). YEAR (0) End-of-Year CF $5,000 $5,000 (1.04) $5,000 (1.04) 20 $5,000 (1.04) (b) Repeat part (a) assuming that the CF's do not stop at the end of year 20, but continue forever AND that the growth rate is -5% instead of +4%.

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