CHAPTER 1

This is an annuity problem with the present value of the annuity equal to $2 million (as of your retirement date), and the interest rate equal to 8 percent, with 15 time periods. ... In real terms, the $5 million dollar payment is: $5,000,000/(1.04)20 = $2,281,935. Thus, the present value of the project is: [As noted in the statement of the ... ................
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