Present value of a growing perpetuity what is the present, Finance Basics

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Present value of a growing perpetuity what is the present

Question: (Present value of a growing? perpetuity) What is the present value of a perpetual stream of cash flows that pays $2,500 at the end of year one and the annual cash flows grow at a rate of 3?% per year? indefinitely, if the appropriate discount rate is 12?%? What if the appropriate discount rate is 10?%?

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Finance Basics: Present value of a growing perpetuity what is the present

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