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ou are considering an investment product that is expected to generate an annual cash flow of $700 in perpetuity, starting from today. Assume you have

ou are considering an investment product that is expected to generate an annual cash flow of $700 in perpetuity, starting from today. Assume you have a required rate of return of 8%, how much would you pay for this investment?

Assume you can purchase this investment from a friend for $8,500, do you think it is a good investment? (2 marks)

need done in 10 minutes MAX

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