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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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