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You are offered a perpetuity that costs $40,000 and will pay you $3,600 a year starting at the end of the year. If the required

You are offered a perpetuity that costs $40,000 and will pay you $3,600 a year starting at the end of the year. If the required return does not change, how much would you be willing to pay if this was a 25 year annual payment, ordinary annuity?

$35,361.29

$40,000

$34,159.28

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