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  3. a growing perpetuity has its first cash flow at th

A growing perpetuity has its first cash flow at the end of this year of...

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Finance

  1. A growing perpetuity has its first cash flow at the end of this year of $1,000. Every year afterwards, the cash flow will increase by 3% indefinitely. The required return is 12%, compounded annually.
    1. What is the value today?
    2. What is the value in 5 years?

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