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An investment makes constant annual payments for the next 25 years of $890 with the first payment due at t=1. After this period, payments grow
- An investment makes constant annual payments for the next 25 years of $890 with the first payment due at t=1. After this period, payments grow at a rate of 2% annually and are paid in perpetuity. What is the present value of the investment's cash flows at an annual discount rate of 8.0%?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
