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A renewable energy company offers you a lifetime contract to receive annual paym...
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A renewable energy company offers you a lifetime contract to receive annual payments for licensing your patented technology. The first payment of $1,300 will be made one year from today, and each subsequent payment will increase by 5.3% per year indefinitely. If the discount rate is 8.5% per year, what is the value of this payment stream immediately before the first payment is received? The answer is closest to:
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100%
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