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An investment makes annual payments. The first payment of $604 is due in one year at t=1. Payments grow at a rate of 8% annually
An investment makes annual payments. The first payment of $604 is due in one year at t=1. Payments grow at a rate of 8% annually until t=17. After this period, payments decline at a rate of 5% annually and are paid in perpetuity. What is the present value of the investment's cash flows at an annual discount rate of 17.2%? $
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