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Kristie owns a perpetuity which pays $12,000 at the end of each year. She comes to you and offers to sell you all of the
Kristie owns a perpetuity which pays $12,000 at the end of each year. She comes to you and offers to sell you all of the payments to be received after the 10th year at an 8% interest rate. Explain how you can determine the value of this offer provide calculation results to back up you explanation.
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