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Find what present value of a perpetual stream of cash flows

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Problem 1: What is the present value of a perpetual stream of cash flows that pays ?$6,500 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 12?%? What if the appropriate discount rate is 10?%?

Problem 2: If the appropriate discount rate is 12?%, the present value of the growing perpetuity is? $______ (Round to the nearest? cent.)

Reference no: EM132795743

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