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you are currently willing to pay $25,000 to purchase a perpetuity which will pay you $2,500 each year forever. (first payment recieved one year from
you are currently willing to pay $25,000 to purchase a perpetuity which will pay you $2,500 each year forever. (first payment recieved one year from today). if your required rate of return does not change, how much would you currently be willing to pay if this were a 5-year ordinary annuity of $2,500 per year instead of a perpetuity?
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