You are considering an investment that will pay you and your heirs $5,000 at the end of each year forever. the price of the investment is $72,000. given your expertise with time value from finance 3403, you are concerned that this price may not be fair. if you can earn 8% annually on your money, what would you consider to be a fair price for the investment?

Evan company reports net income of $232,000 each year and declares an annual cash dividend of $100,000. the company holds net assets of $2,130,000 on january 1, 2017. on that date, shalina purchases 40 percent of evan's outstanding common stock for $1,066,000, which gives it the ability to significantly influence evan. at the purchase date, the excess of shalina’s cost over its proportionate share of evan’s book value was assigned to goodwill. on december 31, 2019, what is the investment in evan company balance (equity method) in shalina’s financial records?