What is the present value of a perpetual stream of cash flow

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Question: (Present value of a growing perpetuity) What is the present value of a perpetual stream of cash flows that pays ?$5,000 at the end of year one and the annual cash flows grow at a rate of 4?% per year? indefinitely, if the appropriate discount rate is 11?%? What if the appropriate discount rate is 9?%?

Reference no: EM132049825

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