One way of valuing a company is to calculate the present value of all its future
Chapter 10, Problem 18(choose chapter or problem)
One way of valuing a company is to calculate the present value of all its future earnings. A farm expects to sell $1000 worth of Christmas trees once a year forever, with the first sale in the immediate future. What is the present value of this Christmas tree business? The interest rate is 1% per year, compounded continuously.
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