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A client is considering two possible investments, each pays $10,000 per year (end of year). (timeline not required) A 30-year annuity, 15 percent compounded annually,

A client is considering two possible investments, each pays $10,000 per year (end of year). (timeline not required)

  1. A 30-year annuity, 15 percent compounded annually, OR
  2. A perpetuity, 15 percent compounded annually.

Which investment would you recommend and why? (show all calculations)

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