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To pay for a new highway the local government sells a perpetuity that promises to pay $1 000 a year from now until the end

To pay for a new highway the local government sells a perpetuity that promises to pay $1 000 a year from now until the end of time. If interest rates are 10%, what is the most that you would be willing to pay to get these future cash flows?

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To calculate the present value of a perpetuity you can use the formula PV CFr Where PV ... blur-text-image

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