An analyst has valued an investment today, at $25,000. The investment pays $ X one year from
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An analyst has valued an investment today, at $25,000. The investment pays $ X one year from now, $X two years from now, nothing at t=3, and $ 2X on t=4. This pattern will continue in perpetuity (i.e, $ X on t=5, $ X on t=6, nothing at t=7,and $ 2X on t=8; etc.). If the effective annual rate that she has used is 10%, what is your estimate of X?
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