Q7: What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%? Answer: P value if 5% = P2,000.00, P value if 7% = P1,428.57, P value if 11% = P909.09 Q8: What is the value...


Q8: Engineering Economics. On Q8: Please (1) Identify the Given (2). Draw a cash flow diagram (3). Show Solution in getting the final answer indicated.


Q7: What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%?<br>Answer: P value if 5% = P2,000.00, P value if 7% = P1,428.57, P value if 11% = P909.09<br>Q8: What is the value of a perpetuity of P100 per year if the discount rate is 5% and the cash flows do<br>not begin until two years from now?<br>Answer: P = P1,814.05<br>

Extracted text: Q7: What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%? Answer: P value if 5% = P2,000.00, P value if 7% = P1,428.57, P value if 11% = P909.09 Q8: What is the value of a perpetuity of P100 per year if the discount rate is 5% and the cash flows do not begin until two years from now? Answer: P = P1,814.05

Jun 06, 2022
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