(Choose 1 answer)
(20645) Growing perpetuity: Norwood Investments is putting out a new product. The pro $25,000 in the first year, and after that the payouts will grow by an annual rate of 2.5 percent invest the cash flows at 7.5 percent, how much will you be willing to pay for this perpetuity? ( nearest dollar.)
A. $312,000
B. $233,000
C. $250,000
D. $500,000
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