Question: Question content area top Part 1 (Present value of a perpetuity)At a discount rate of 13.00%, find the present value of a perpetual payment of

Question content area top

Part 1

(Present value of a perpetuity)At a discount rate of 13.00%, find the present value of a perpetual payment of

$4,000 per year. If the discount rate were lowered to 6.50%, half the initial rate, what would be the value of the perpetuity?

a. If the discount rate were 13.00%,

the present value of the perpetuity is

$enter your response here

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