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With an 8% p.a. rate, how much would you pay for a business that produces $1,200 per year forever, with the first cash flow occurring

With an 8% p.a. rate, how much would you pay for a business that produces $1,200 per year forever, with the first cash flow occurring in one years time?

Attention tutor: please explain it thoroughly. Please use formulas without using excel spreadsheet.

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