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You just learnt that you are going to receive $300 a year forever. In addition, this amount will increase at the rate of 5% forever.

You just learnt that you are going to receive $300 a year forever. In addition, this amount will increase at the rate of 5% forever. However, these payments will not begin until five years from today. What is the present value of these payments assuming a discount rate of 6%?

Question 24 options:

22,417.75

23,762.81

25,188.58

30,000.00

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