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You make an investment that will pay you $20 two years from now. Subsequent payments will be made only after every 2 years, and the
You make an investment that will pay you $20 two years from now. Subsequent payments will be made only after every 2 years, and the amount will be half the previous payment. If this payment pattern continues perpetually, and assuming your required return for this investment is 10%, what is the worth of this investment? How do we attempt the question?
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