An investment which has an expected return of 1009 percent, Ask an Expert

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An investment, which has an expected return of 10.09 percent, is expected to make annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate of 2.26 percent per year. The cash flow in 1 year from today is expected to be 19,070 dollars. What is the present value (as of today) of the cash flow that is expected to be made in 7 years?

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Financial Management, Finance

Category:- Financial Management
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