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Posted on Aug 30, 2024

If you are willing to pay $ 1 2 , 9 3 8 today to receive $ 1 2 0 0 per year forever, then

If you are willing to pay $

12, 938

today to receive $

1200

per year forever, then your required rate of return must be

q, % .

Assume the first payment is received one year from today.

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