question archive Jennifer has invested in two schemes
Jennifer has invested in two schemes
Subject:BusinessPrice: Bought3
Jennifer has invested in two schemes. The first scheme has a required return of 12?% and will produce a stream of £300 at the end of each year indefinitely. The second scheme has a required return of 8?% and will produce an? end-of-year cash flow of £500 in the first? year, £800 in the second and third? years, and £250 in its fourth and final year. Calculate the present value of each investment scheme based on their payment streams and required returns.
The present value of the first investment scheme is £.................................. ?(Round to the nearest? penny.)
