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Suppose you inherited a perpetuity that pays $ 4 , 0 0 0 one year from now, and each of the remaining annual payments will

Suppose you inherited a perpetuity that pays $

4, 000

one year from now, and each of the

remaining annual payments will be

5 %

larger than the prior payment. Assuming that the annual

onportunity cost of canital is

12 %,

what is the value of this perotuitv today?

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