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Joan Smith wants to receive $12,000 annually in perpetuity and will invest her money in an investment that will earn a return of 12.5 percent
Joan Smith wants to receive $12,000 annually in perpetuity and will invest her money in an investment that will earn a return of 12.5 percent annually. What is the value of the investment that he needs to make today to receive his perpetual cash flow stream?
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$1,500
$150,000
$125,000
$96,000
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