(************** Content-type: application/mathematica ************** CreatedBy='Mathematica 4.2' Mathematica-Compatible Notebook This notebook can be used with any Mathematica-compatible application, such as Mathematica, MathReader or Publicon. The data for the notebook starts with the line containing stars above. To get the notebook into a Mathematica-compatible application, do one of the following: * Save the data starting with the line of stars above into a file with a name ending in .nb, then open the file inside the application; * Copy the data starting with the line of stars above to the clipboard, then use the Paste menu command inside the application. Data for notebooks contains only printable 7-bit ASCII and can be sent directly in email or through ftp in text mode. Newlines can be CR, LF or CRLF (Unix, Macintosh or MS-DOS style). 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For more information on notebooks and Mathematica-compatible applications, contact Wolfram Research: web: http://www.wolfram.com email: info@wolfram.com phone: +1-217-398-0700 (U.S.) Notebook reader applications are available free of charge from Wolfram Research. *******************************************************************) (*CacheID: 232*) (*NotebookFileLineBreakTest NotebookFileLineBreakTest*) (*NotebookOptionsPosition[ 7809, 287]*) (*NotebookOutlinePosition[ 9345, 334]*) (* CellTagsIndexPosition[ 9259, 328]*) (*WindowFrame->Normal*) Notebook[{ Cell[CellGroupData[{ Cell[TextData[{ StyleBox["DCF", "Title", FontSlant->"Italic", FontColor->RGBColor[1, 0, 0]], StyleBox[" Example (infinite case, personal income tax) by Kruschwitz/L\ \[ODoubleDot]ffler", "Title", FontColor->RGBColor[1, 0, 0]] }], "Section", CellFrame->True, CellDingbat->None, ShowCellBracket->False, TextAlignment->Center, Background->GrayLevel[0.811765]], Cell["\<\ In this notebook we only consider examples where the stochastic structure of \ the cash flows is not used. \ \>", "Text", ShowCellBracket->False] }, Open ]], Cell[CellGroupData[{ Cell["Parameters of the Model", "Section", Editable->False, CellFrame->True, CellDingbat->"\[FilledSquare]", ShowCellBracket->False, Background->GrayLevel[0.811765]], Cell["\<\ We are dealing here with an (unlevered) company,which will bear infinitely \ many years of payments to its owners.They,however,cannot be predicted with \ certainty. 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