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You have an opportunity to purchase a Magic Box. The Magic Box produces a $ 5 0 bill every year on the anniversary date...forever. As

You have an opportunity to purchase a Magic Box. The Magic Box produces a $50 bill every year on the anniversary date...forever. As an added bonus it also pays you $100 on the purchase date. Your discount rate is 6%. What is the most you would pay for the box?
How much would you pay if the box stops working after the 75th payment?

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