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What is the present value of this growing perpetuity

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Reference no: EM133174416

Question - You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $21,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.05 annually. If you use a discount rate of 0.08 for investment products, what is the present value of this growing perpetuity?

Reference no: EM133174416

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