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Suppose the Dutch Water Authority wanted to raise money by selling perpetuities of $180 per year, with the first cash flow paid in one year
Suppose the Dutch Water Authority wanted to raise money by selling perpetuities of $180 per year, with the first cash flow paid in one year from today. If the appropriate discount rate is 4.0%, what would you be willing to pay today for this perpetuity? Round to the nearest dollar.
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