Determine the present value of the following cash flows; P4,000 at the end of 4th month and every month thereafter for the first year. and P5,000 every year in perpetuity. Interest rate at 6% effective.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
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Chapter5: The Time Value Of Money
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Problem No 3.
Determine the present value of the following cash flows; P4,000 at the end of 4th month and
every month thereafter for the first year. and P5,000 every year in perpetuity. Interest rate at
6% effective.
Transcribed Image Text:Problem No 3. Determine the present value of the following cash flows; P4,000 at the end of 4th month and every month thereafter for the first year. and P5,000 every year in perpetuity. Interest rate at 6% effective.
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