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You are considering the purchase of a piece of land that can be leased to the government for 100 years. The annual lease payment is

You are considering the purchase of a piece of land that can be leased to the government for 100 years. The annual lease payment is $20,000 and the appropriate discount rate for your situation is 4 percent. What is the (approximate) present value of this stream of constant lease payments?

$200000

$300000

$400000

$500000

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