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1. Explain what happens to the value of a perpetuity over time, assuming the perpetuity has begun. 2. Explain what happens to the value of

1. Explain what happens to the value of a perpetuity over time, assuming the perpetuity has begun.

2. Explain what happens to the value of a growing perpetuity over time, assuming the growing perpetuity has begun.

3. Explain why the value today of a perpetuity that doesn't start until sometime in the future is not simply C/r.

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