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What is the most you would pay for the condo today

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Suppose a condo generates $17,000 in cash flow at the end of year one. If the cash flows grow at 3% per year, the interest rate is 11%, and the building will be torn down in 25 years (the building is worthless after 25 years), what is the most you would pay for the condo today?

Reference no: EM133114801

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