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Problem 1 : Basic Perpetuity Calculate the present value of a perpetuity that starts paying $ 1 , 0 0 0 per year, starting one

Problem 1: Basic Perpetuity
Calculate the present value of a perpetuity that starts paying $1,000 per year, starting one year from now.
Formula: PV=Cr
C= annual cash flow ($1,000)
r= annual discount or hurdle rate (5%)
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