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Assume that a financial asset will provide $500 for the next 10 years and then its cash flows will start to grow by 5% a
Assume that a financial asset will provide $500 for the next 10 years and then its cash flows will start to grow by 5% a year forever. If the annual interest rate is 8% for the first 10 years and 10% thereafter, its price is closest to: Select one: a. $8,200 b. $10,500 C. $9,800 d. $7,400
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