Question: How does your answer change if you receive the first $100 today? You are promised a cash flow of $100 every year forever! You will
How does your answer change if you receive the first $100 today? You are promised a cash flow of $100 every year forever! You will receive your first payment TODAY. There is no risk associated with the payments. You can invest and earn a risk-free rate of return of 5%. What is the present value of the perpetuity? Submit your answer rounded to the nearest dollar (e.g., $9,999)
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