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An investment promises to pay you $700 per year starting immediately. The cash flow from the investment is expected to increase by 3 percent per
An investment promises to pay you $700 per year starting immediately. The cash flow from the investment is expected to increase by 3 percent per year forever. If alternative investments of similar risk earn a return of 8 percent per year, determine the maximum you would be willing to pay for the investment. (Round answer to 2 decimal places, e.g. 125.12. Do not round your intermediate calculations.)
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