1.Please note that r and g are the discount rate and the growth rate of cash flows...
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Question:
1.Please note that r and g are the discount rate and the growth rate of cash flows for thebelow growing annuity and perpetuityquestions.
A.State and prove the formulae to find the value of a growingannuity.
B.Show why the formulae for growing perpetuity holds only when r>g.
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