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An investment promises to pay you $7,000 per year forever with the first payment today. If alternative investments of similar risk earn 1% per year, determine the maximum you would be willing to pay for this investment Enter your response below (rounded to 2 decimal places).

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Answer #1
Maximum amount that can pay for this investment = Invesment amount / Return of investment
Maximum amount that can pay for this investment = $ 7,000/ 0.01
Maximum amount that can pay for this investment = $ 700,000
So we can pay maximum for this investment is ony $ 700,000
Answer = $ 700,000.00
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