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Business, 04.08.2021 03:00 noreenhussain

Michael Bilkman has an opportunity to buy a perpetuity that pays $12,450 annually. His required rate of return on this investment is 13.25%. At what price would Michael be indifferent to buying or not buying the investment? Round off to the nearest $1. Select one:

a.
$170,877

b.
$93,962

c.
$83,470

d.
$121,709

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Answers: 1

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