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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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