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Present value of a perpetual stream of cash flows

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What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of one year and grows at a rate of 7% indefinitely?

The rate of interest used to discount the cash flows is 9%. What is the present value of the growing perpetuity?

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The solution is prepared by me in MS word File. It is in half page and in approx 100 words. The question is about calculating Present value of perpetual cash flow.

Reference no: EM131089557

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