An investment promises to pay you $8,500 per year starting in 3 years. The cash flow from the investment is expected to

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answerhappygod
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An investment promises to pay you $8,500 per year starting in 3 years. The cash flow from the investment is expected to

Post by answerhappygod »

An investment promises to pay you $8,500 per year starting in 3
years. The cash flow from the investment is expected to increase by
1% per year forever. If alternative investments of similar risk
earn a return of 10% per year, determine the maximum you would be
willing to pay for this investment today.
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