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What is the present value of a growing perpetuity of 0.05 annually 0.10 dicount rate with initial payment of 24000?
You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.05 annually. If you use a discount rate of 0.10 for investment products, what is the present value of this growing perpetuity?
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