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Josh is looking at investment opportunities with an adviser, who has 2 different plans. Plan A is a $25,000 annual perpetuity.

Plan B is a 15-year, $35,000 annual annuity. Regardless of the plan he decides on, he will only get the first payment one year from today.

At what discount rate (r) would he be indifferent between the two plans?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92802043

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