A cottage is for sale for $580,000. Currently it generates annual cash flows, net of all expenses

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A cottage is for sale for $580,000. Currently it generates annual cash flows, net of all expenses and taxes, of $35,000. If the cottage lasts forever, what rate of growth of the annual cash flows will be necessary for you to earn an 8% annual rate of return on your investment?
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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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