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Your father is 60 years old and wants to set up a cash flow stream that would be forever. He would like to receive $20,000
Your father is 60 years old and wants to set up a cash flow stream that would be forever. He would like to receive $20,000 every year, beginning at the end of this year. If he could invest in an account earning 9 percent, how much would he have to invest today to receive his perpetual cash flow? (Round to the nearest dollar.)
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