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What is the present value of a perpetuity that offers to pay $100 next year and every year after the payment grows at 3.5%. Investments

What is the present value of a perpetuity that offers to pay $100 next year and every year after the payment grows at 3.5%. Investments with similar risk are offering an 8% annual return.

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To calculate the present value of a perpetuity we can use the following formula PV C r where PV is t... blur-text-image

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