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Suppose a condo generates $12,000 in cash flow at the end of year one. If the cash flows grow at 1% per year, the interest
Suppose a condo generates $12,000 in cash flow at the end of year one. If the cash flows grow at 1% per year, the interest rate is 10%, and the building will be torn down in 26 years (the building is worthless after 26 years), what is the most you would pay for the condo today?
Enter your response below (rounded to 2 decimal places).
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