Materials from Class - 2021-9 > Wed 11/10

Daily exercise on PV formulas 3-5

Please sketch the cash flows below and compute their present values:

  1. An infinite stream of $1000 payments beginning in year 1. Use `r=4%`.
  2. An infinite stream of $5000 payments starting in year 11 using `r=7%`.
  3. An infinite stream of $5000 payments starting in year 22 using `r=5%`.
  4. A stream of $10M payments in years 1-40 using `r=3%`.
  5. A stream of $18M payments in years 1-40 using `r=7%`.

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Revised 11/10/2021