What is the present value of a ?perpetuity

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1. What is the present value of a ?$70 perpetuity discounted back to the present at 13 ?percent?

2. What is the present value of a perpetual stream of cash flows that pays $90,000 at the end of year one and then grows at a rate of 5?% per year? indefinitely? The rate of interest used to discount the cash flows is 11%

Reference no: EM132383933

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