Question 7 6 pts Suppose that a constant, perpetual cash flow is $1,500 and the discount...

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Answer 1

Answer #1

answer:

Cash flow C=$1500 per year

Discount rate r=10%

So Value of this perpetuity = C/{(1+r)^3*r} =1500/{(1+10%)^3*10%)=$11269.72

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Answer 2

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Question 7 6 pts Suppose that a constant, perpetual cash flow is $1,500 and the discount...