What is the present value of a perpetuity of $100 per year if the appropriate discount rate
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What is the present value of a perpetuity of $100 per year if the appropriate discount rate is 7 percent? Suppose that interest rates doubled in the economy and the appropriate discount rate is now 14 percent. What would happen to the present value of the perpetuity?
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The present value of a perpetuity can be calculated using the following formula Present Value P...View the full answer
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