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Question 13 Let G be a perpetuity. Its first cash flow, at the end of the first year, is C1. The relevant discount rate is
Question 13 Let G be a perpetuity. Its first cash flow, at the end of the first year, is C1. The relevant discount rate is r. The formula for the present value of the perpetuity (PV(G)) follows from oo PV(G) only 8. PV(G)(+ r) -2-1 (Itr)-fonly C. PV(G)(1 +r) C1PV(G) only D. Both B and C E. I choose not to
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