Question
You are invited to participate in a new company. The company is projected to payout $5,000 in the first year, and after that the payouts
You are invited to participate in a new company. The company is projected to payout $5,000 in the first year, and after that the payouts will grow by an annual rate of 3 percent forever. If you can invest the cash flows at 7 percent, how much will you be willing to pay for this perpetuity?
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Matlab An Introduction with Applications
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