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Compute the present value of a growth perpetuity whose first payment of $100 is received 4 years from today. Payments grow at 5% per year
Compute the present value of a growth perpetuity whose first payment of $100 is received 4 years from today. Payments grow at 5% per year thereafter and the rate of interest is 10% per year. What is the present value of this growth perpetuity? Ignore any negative signs in your answer.
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