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You are invited to participate in a new company. The company is projected to payout $10,000 in the first year, and after that the payouts

You are invited to participate in a new company. The company is projected to payout $10,000 in the first year, and after that the payouts will grow by an annual rate of 6 percent forever. If you can invest the cash flows at 8 percent, how much will you be willing to pay for this perpetuity? 



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