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Question 31 (Bonus) (1 point) What is the approximate amount you would be willing to pay for the following stream of risky cash flows
Question 31 (Bonus) (1 point) What is the approximate amount you would be willing to pay for the following stream of risky cash flows if your risk-adjusted discount rate is 8%: The cash flow in year 1 is $8. The cash flow from year 1 is expected to grow by 10% in each of years 2 and 3. After that, the cash flow is expected to grow at 5% forever. a) $280 b) $270 c) $310 d) $290
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