Question: Suppose a condo generates $ 1 6 , 0 0 0 in cash flow at the end of year one. If the cash flows grow

Suppose a condo generates $16,000 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 26 years (the building is worthless after 26 years), what is the most you would pay for the condo today?

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