What if the appropriate discount rate

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What is the present value of a perpetual stream of cash flows that pays ?$4000 at the end of year one and the annual cash flows grow at a rate of 2?% per year? indefinitely, if the appropriate discount rate is 9%? What if the appropriate discount rate is 7?%?

a. If the appropriate discount rate is 9?%, the present value of the growing perpetuity is? $

Reference no: EM132576444

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