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1. Suppose that we have a perpetuity whose first two cash flows (t=1 and 2) are $1,000 but all future cash flows grow at 3%

1. Suppose that we have a perpetuity whose first two cash flows (t=1 and 2) are $1,000 but all future cash flows grow at 3% (i.e., the first grown cash flow occurs at t=3). What is the present value of this perpetuity if the discount rate is 8%?

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