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Growing Perpetunity: You are evaluating a growing perpetunityproduct from a large financial service firm. The product promisesan initial payment of $20,000 at the end of
Growing Perpetunity: You are evaluating a growing perpetunityproduct from a large financial service firm. The product promisesan initial payment of $20,000 at the end of this year andsubsequent payments will thereafter grow at a rate of 3.4 percentannually. If you use a 9 percent discount rate for investmentproducts what is the present value of this growing perpetunity?
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