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Annual cash flow associated with the perpetuity

A perpetuity with the first annual cash flow paid at the beginning of year 4 is equivalent to receiving $100,000 in 15 years time. Assume that the perpetuity and the lump sum are of equivalent risk and that j2 = 11% pa is the appropriate interest rate. How much is the annual cash flow associated with the perpetuity?

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## Q : Estimate of the expected amount ranges

Cheater Corp.'s manager thinks it is probable that Cheater Corp. will eventually have to pay something to settle the suit, and the best estimate of the expected amount ranges from $1,200,000 to $2,400,000.