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You are renting some fields to a local farmer. He pays rent once a year after the crops are harvested and sold. At the end
You are renting some fields to a local farmer. He pays rent once a year after the crops are harvested and sold. At the end of this year, he will pay $5,000, but you agree that the rent will increase 3% each year. Assume the annual interest rate is 6%. What is the present value of the rent if you assume it is a perpetuity?
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
9780078025525, 9780077517359, 77517350, 978-0077398194
