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Your friend is offering to sell you a growing perpetuity, which starts with a first payment of $90 two years from today and continues with
Your friend is offering to sell you a growing perpetuity, which starts with a first payment of $90 two years from today and continues with one payment each year after that point. Each payment will be 5% larger than the previous payment. What is the fair price for this stream of cash flows if the discount rate is 10%?
Group of answer choices
$2,045
$1,636
$1,148
$2,497
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