5.
5.50%? The perpetuity does not begin until three years from today. (delayed perpetuity)
$4,165.55
You are negotiating to make a 6-year loan of $40,000 to Breck Inc. To repay you, Breck has agreed to pay $5,000
at the end of Year 1, $10,000 at the end of Year 2, and $15,000 at the end of Year 3, plus a fixed but currently
unspecified cash flow, \"X\", at the end of each year from Year 4 through Year 6. Breck is essentially riskless, so
you are confident the payments will be made. You regard 8% as an appropriate rate of return on a low risk but
illiquid 6-year loan. What cash flow must the investment provide at the end of each of the final 3 years to satisfy
your return requirement? (i.e. what is \"X\"?)
$7,278.14
Year1= 5,000
Year2= 10,000
Year3= 15,000
Year4= x
Years = X
Year6= x
5,000 10,000 15,000??
6 1 2 3 4 5 6
I/Y=8
FV=40,000
n=6