What is the present value of perpetual stream of cash flows

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Question: What is the present value of a perpetual stream of cash flows that pays $4, 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 10%? What if the appropriate discount rate is 8%? a. If the appropriate discount rate is 10%, the present value of the growing perpetuity is $ (Round to the nearest cent.)

Reference no: EM132049750

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