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Growing Perpetuity ( and selling price ) Carrie grandfather owns a farm. The farm earned $ 2 1 0 , 0 0 0 this year.

Growing Perpetuity (and selling price)
Carrie grandfather owns a farm. The farm earned $210,000 this year. The profits are expected to grow at 4.5% per year forever. What is the value of the farm if the discount rate is 8.75%?
What is the expected selling price of the farm next year?
How much did the farm appreciate (as a percent)?
%
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