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YourHomeNow rents out various newly built properties to low-income families. It has recently rented a flat to a client for 12,000 per year. A discount rate of 7% is used by YourHomeNow. (a) Calculate the present value of this rental income assuming it is expected to continue in perpetuity and there will be no growth in annual rental income (5 marks) (b) Calculate the present value of this rental income assuming it is expected to continue in perpetuity and there will be 4% growth in annual rental income

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