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Timeline Corp is considering spending $32,000 to install a new conveyor belt system that should provide a perpetually growing stream of cash for the company,
Timeline Corp is considering spending $32,000 to install a new conveyor belt system that should provide a perpetually growing stream of cash for the company, with the first year being $3,500 and future years growing at 3%. If the opportunity cost of capital is 9%, what is the highest the required discount rate could be (rounded to two places) for this to still be a viable project?
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