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I You own a gas pipeline that requires no maintenance and will produce $2 million of revenue next year. Unfortunately, aer the rst year the

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I You own a gas pipeline that requires no maintenance and will produce $2 million of revenue next year. Unfortunately, aer the rst year the Trol'urne of gas (and thus the revenue} is expected to decline by 4.13% per year. a. If the discount rate is 11.3% and the pipeline lasts forever, what is it worth today?r b. If the pipeline is to be abandoned at the end of 2D years, what is it worth today?r

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