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11. What is the present value of an income stream which provides overline Z 2,000 a year for the first five years, and 3,000 a

11. What is the present value of an income stream which provides overline Z 2,000 a year for the first five years, and 3,000 a year forever thereafter, if the discount rate is 10 per cent? [Hint: The present value for a perpetual annuity is derived by dividing the constant annual flow by the discount factor.]

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