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(Present value of a growing perpetuity) Your firm has taken on cost saving measures that will provide a benefit of $11,000 in the first year.
(Present value of a growing perpetuity) Your firm has taken on cost saving measures that will provide a benefit of $11,000 in the first year. These cost savings will decrease each year at a rate of 2 percent forever. If the appropriate interest rate is 5 percent, what is the present value of these savings? The present value of these cost savings is $ (Round to the nearest cent.)
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