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Perpetuity 7. What is the present value of a perpetuity of AED1,000 per year if the appropriate discount rate is 6%? b) If interest rates
Perpetuity
7. What is the present value of a perpetuity of AED1,000 per year if the appropriate discount rate is 6%?
b) If interest rates in general were to double and the appropriate discount rate rose to 12%, what would happen to the present value of the perpetuity?
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