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You are the recipient of a gift that will pay you $25,000 one year from now and every other year after for 24 years. The
You are the recipient of a gift that will pay you $25,000 one year from now and every other year after for 24 years. The payments will increase in value by 2.5% each year. If the discount rate is 8.5% what is the present value of this gift?
A. $461,667
B. $316,172
C. $409,613
D. $311,406
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