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What is the present value of a $506 perpetuity discounted back to the present at 5.86...

What is the present value of a $506 perpetuity discounted back to the present at 5.86 percent.

The answer should be calculated to two decimal places.

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Answer #1
Present value of cash flow = Annual cash flow / Discount rate
= $           506 / 5.86%
= $ 8,634.81
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