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1.- Somebody acquires some shares that are expected to produce yearly cash inflows of 30000 forever, but the first payment wi

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Answer #1

Ans $ 161850.36

Value of shares in 5 years = Regular payments / Interest rate

                                           = 30000 / 11%

                                           = $ 272727.30

Value of Shares at present = Value of shares in 5 years / ( 1 + interest rate)^no of years

                                            = 272727.30 / (1 + 11%)^5

                                            = $ 161850.36

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