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A growing perpetuity of cash flows has a first cash flow of $500 and each subsequent...

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Finance

A growing perpetuity of cash flows has a first cash flow of $500and each subsequent cash flow grows by 2%. The appropriate discountrate is 10%. If the first cash flow occurs in 2 years, what is thevalue of the growing perpetuity in 5 years?

$6,632.55

$6,250.00

$5,165.29

$8,318.75

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Transcribed Image Text

A growing perpetuity of cash flows has a first cash flow of $500and each subsequent cash flow grows by 2%. The appropriate discountrate is 10%. If the first cash flow occurs in 2 years, what is thevalue of the growing perpetuity in 5 years?$6,632.55$6,250.00$5,165.29$8,318.75

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