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(Present value of a growing perpetuity)What is the present value of a perpetual stream of cash flows that pays $1,500 at the end of year

(Present value of a growing perpetuity)What is the present value of a perpetual stream of cash flows that pays

$1,500

at the end of year one and the annual cash flows grow at a rate of

per year indefinitely, if the appropriate discount rate is

9%?

What if the appropriate discount rate is

7%?

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