What is the present value of a perpetual stream of cash flow

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(Present value of a growing perpetuity)  

Question 1: What is the present value of a perpetual stream of cash flows that pays $7,000 at the end of year one and the annual cash flows grow at a rate of 3% per year? indefinitely, if the appropriate discount rate is 11%? What if the appropriate discount rate is 9%?

Reference no: EM132485530

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