What does about the value of perpetual payments

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Question 1: A friend who owns a perpetuity that promises to pay RM1,000 at the end of each year, forever, comes to you and offers to sell you all of the payments to be received after the 25th year for a price of RM1,000. At an interest rate of 10%, should you pay the RM1,000 today to receive payment numbers 26 and onwards? What does this suggest to you about the value of perpetual payments?

Reference no: EM132552163

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