As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The

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As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The first payment will occur in a year and will be for $20,000. You will continue receiving monetary awards annually, with each award increasing by 5 percent over the previous award, and these monetary awards will continue forever. If the appropriate interest rate is 10 percent, what is the present value of this award?

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Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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