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An investment costs $3,500 and pays $125 per year forever. If the discount rate is 8%, then how much does the cash flow need to

image text in transcribed An investment costs $3,500 and pays $125 per year forever. If the discount rate is 8%, then how much does the cash flow need to grow each year to justify the cost of the investment so that there is no arbitrage opportunity? Choose the closest answer. 11.57%3.57%1.00%4.44%

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