Question: Suppose a condo generates $ 1 2 , 5 0 0 in cash flow at the end of year one. If the cash flows grow

Suppose a condo generates $12,500 in cash flow at the end of year one. If the cash flows grow at 5% per year, the interest rate is 10%, and the building will be torn down in 18 years (the building is worthless after 18 years), what is the most you would pay for the condo today

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