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5 ) Beginning in year 0 , with a payment of $ 5 0 , 0 0 0 , what is the present value of

5) Beginning in year 0, with a payment of $50,000, what is the present value of an asset in perpetuity that appreciates by 4% each year and which is discounted at the rate of 6% each year?

6) Should we proceed with a project that will pay us $100 million per year (starting at the end of the first year (start discounting for year one)) for the next five years in return for an investment of $400 million today? Why, or why not? Assume a discount rate of 5% per year

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