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Calculate the difference between the present value of $200 per year cash payments for the next 40 years and the present value of $200 per
Calculate the difference between the present value of $200 per year cash payments for the next 40 years and the present value of $200 per year cash payments in perpetuity. Assume in either case, the first payment occurs one year from today and that the appropriate discount rate is 8%/year. The difference in the present value of these two streams of future cash payments that you calculated equals the present value of cash payments over what period of time?
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