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Suppose a condo generates $18,000 in cash flows in the first year. If the cash flows grow at 3% per year, the interest rate is
Suppose a condo generates $18,000 in cash flows in the first year. If the cash flows grow at 3% per year, the interest rate is 9%, and the building will be torn down in 25 years (the building is worthless after 25 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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