公司理财教材新chap4.pptVIP

* * * * * Growing Annuity A growing stream of cash flows with a fixed maturity 0 1 C 2 C×(1+g) 3 C ×(1+g)2 T C×(1+g)T-1 Growing Annuity: Example A defined-benefit retirement plan offers to pay $20,000 per year for 40 years and increase the annual payment by 3% each year. What is the present value at retirement if the discount rate is 10%? 0 1 $20,000 2 $20,000×(1.03) 40 $20,000×(1.03)39 You are evaluating an income generating property. Net rent is received at the end of each year. The first years rent is expected to be $8,500, and rent is expected to increase 7% each year. What is the