Business, 29.04.2021 02:30 babygirlqueen5588

Given a cash flow stream X = (x0, x1, x2, . . . , xn), a new stream X[infinity] of infinite length is made by successively repeating the corresponding finite stream. The interest rate is r. Let P and A be the present value and the annual worth, respectively, of stream X. Finally, let P[infinity] be the present value of stream X[infinity]. Find A in terms of P[infinity] and conclude that A can be used as well as P[infinity] for evaluation purposes

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Given a cash flow stream X = (x0, x1, x2, . . . , xn), a new stream X[infinity] of infinite length i...

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