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Consider a perpetual stream of cash flows. The first cash flow is received at date 1 ; this cash flow equals 1 . 0 0

Consider a perpetual stream of cash flows. The first cash flow is received at date 1;
this cash flow equals 1.00. Each subsequent date's cash flow is 1.25% less than the
cash flow at the previous date. The rate of interest equals 5%. What is the present
(date 0) value of this stream of cash flows?
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