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a) How much would you be willing to pay for an investment that will pay you and your heirs $16,000 each year in perpetuity if

a) How much would you be willing to pay for an investment that will pay you and your heirs $16,000 each year in perpetuity if the first payment is to be received in 9 years? Assuming your opportunity cost is 6%?

b) Rework problem (a) If you want the payments to grow by 2% indefinitely. (first payment is $16,000 in year 9)

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