How do find the initial cash flow

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Problem 1: Suppose an investment costing $15,600 generates semi-annual cash flows growing at 2 percent indefinitely. If the interest rate is 8 percent, find the initial cash flow. Assume the first cash flow is received immediately.

Problem 2: Find the value of receiving $350 per month in perpetuity if the interest rate is 6 percent compounded monthly.

Reference no: EM132756005

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