You are evaluating a growing perpetuity investment from a large financial services firm. The investment...
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You are evaluating a growing perpetuity investment from a large financial services firm. The investment promises an initial payment of $7,000 at the end of this year and subsequent payments that will grow at a rate of 1.2 percent annually. If you use a 6.7 percent discount rate for investments like this, what is the present value of this growing perpetuity? (Round to the nearest dollar).
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