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What is the value of a financial asset that pays cash flows every eight months forever that grow at a rate of 2% every eight
What is the value of a financial asset that pays cash flows every eight months forever that grow at a rate of 2% every eight months, with the first cash flow of $2 million starting today (to 1 decimal place)? Assume an annually compounded interest rate of 8%.
a) $36.0 million
b) $61.3 million
c) $62.5 million
d) $63.3 million
e) $64.5 million
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