Unformatted text preview: for a perpetuity that pays $85 per les es una ma olen po would sam tvou pa se ne perpetuty inat . year? 5. Gandalf is buying a new magic staff. He can pay (option 1) $11,000 up front, or he can pay (option 2) $1,000 up front and pay $4000, $3000, $2500, $1500 and $1580.70 over next five years respectively. Although he is a master magician, he does not know much about finance. Now he is asking you to recommend him a payment option. Gandalf's opportunity cost is 10%....
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- Spring '17