If you can invest the cash flows at 7 percent how much will


You are invited to participate in a new company. The company is projected to payout $5,000 in the first year, and after that the payouts will grow by an annual rate of 3 percent forever. If you can invest the cash flows at 7 percent, how much will you be willing to pay for this perpetuity? (Round to the nearest dollar.)

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Finance Basics: If you can invest the cash flows at 7 percent how much will
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