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Sports Inc. is confused about the conversion of an ordinary annuity (aka: finite series of cash flows) to the present value of a perpetuity (aka:
Sports Inc. is confused about the conversion of an ordinary annuity (aka: finite series of cash flows) to the present value of a perpetuity (aka: infinite series of cash flows). First, you need to develop a numeric example and explain this concept to Sports Inc. Second, you need to explain why this concept is so important in the valuation of financial assets stocks, corporations, buildings, stadiums, etc.
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