What is the present value of a perpetual stream

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Question - What is the present value of a perpetual stream of cash flows that pays ?$3,000 at the end of year one and the annual cash flows grow at a rate of 2?% per year? indefinitely, if the appropriate discount rate is 11?%?  What if the appropriate discount rate is 9?%?

a. If the appropriate discount rate is 11?%, the present value of the growing perpetuity is? $__________.

Reference no: EM132778990

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