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What is the present value of this growing perpetuity

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Question - You are evaluating a growing perpetuity investment from a large financial services firm. The investment promises an initial payment of $21,800 at the end of this year and subsequent payments that will grow at a rate of 3.4 percent annually. If you use a 9 percent discount rate for investments like this, what is the present value of this growing perpetuity?

Reference no: EM132817304

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