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8. You hit the lottery and choose to collect as perpetuity. This means you will collect $25,000 each year for the rest of your life.
8. You hit the lottery and choose to collect as perpetuity. This means you will collect $25,000 each year for the rest of your life. Assume there is a 4% interest rate. What is the present value of this perpetuity? [4pts] [Use Table A-4]
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Cima Learning System Management Accounting Performance Evaluation Edition
Authors: Robert Scarlett
4th Edition
0750684305, 978-0750684309
