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chadai
Feb 28, 2010, 05:19 PM
You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $20,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 3.4 percent annually. If you use a 9 percent discount rate for investment products, what is the present value of this growing perpetuity?

morgaine300
Feb 28, 2010, 11:56 PM
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