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Part 1 of 2 HW Score 0 O Points 0 of 1 a If the...

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Basic Math

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Part 1 of 2 HW Score 0 O Points 0 of 1 a If the appropriate discount rate is 13 the present value of the growing perpetuity is Round to the nearest cent 20 points S elated to Checkpoint 6 5 Present value of a growing perpetuity What is the present value of a perpetual stream of cash flows that pays 1 000 at the end of year one and the annual cash flows grow at a rate of 4 per year indefinitely if the appropriate discount 3 What if the appropriate discount rate is 11

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