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A perpetuity with the first annual cash flow paid at the beginning of year 4 is equivalent to receiving $100,000 in 15 years time. Assume that the perpetuity and the lump sum are of equivalent risk and that j2 = 11% pa is the appropriate interest rate.

How much is the annual cash flow associated with the perpetuity?

Please write answer with each and every step and provide solution in Word file please

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