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Carrie will receive her grandfather's farm when he dies. The farm is expected to earn $ 2 5 0 , 0 0 0 each year

Carrie will receive her grandfather's farm when he dies. The farm is expected to earn $

250, 000

each year forever. Carrie expects

her grandfather will die in

12

years after that year's cash flow has been paid. The appropriate discount rate is

7 % .

What is the value of Carrie's inheritance when her grandfather dies?

What is the value of Carrie's inheritance today?

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