Carmen's grandfather died five years ago and left Carmen a perpetuity paying $50,000 a year.Carmen's cost of capital is 4%.After receiving the fifth payment, Carmen received an offer of $1.4 million from The Bizet Hedge Fund for the remainder of the perpetuity.Should Carmen accept the offer?

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The Answer of Carmen's grandfather died five years ago and left Carmen a perpetuity paying $50,000 a year.Carmen's cost of capital is 4%.After receiving the fifth payment, Carmen received an offer of $1.4 million from The Bizet Hedge Fund for the remainder of the perpetuity.Should Carmen accept the offer?

Carmen's Grandfather Died Five Years Ago and Left Carmen a Perpetuity