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(Present value of a growing perpetuity) What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of
(Present value of a growing perpetuity) What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of year one and then grows at a rate of 3% per year indefinitely? The rate of interest used to discount the cash flows is 13%. The present value of the growing perpetuity is $ (Round to the nearest cent.)
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