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Alysha has been offered two perpetuities: Grow and Shrink. Grow promises her $ 2 0 0 in one year and an annual cash flow that

Alysha has been offered two perpetuities: Grow and Shrink. Grow promises her $200 in one year and an annual cash flow that will
increase by 4 percent per year forever. Shrink, in contrast, promises her $1,900 in one year but the annual cash flow will decline by 2
percent forever. If her opportunity cost is 6 percent per year and both annuities cost $1,900, which annuity offers her the greater
value? (Round "Shrink cost" to 2 decimal places, e.g.125.12 and other answer to 0 decimal places, e.g.12,512)
Grow exceeds the cost by
Shrink exceeds the cost by
offers the greater value.
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