What is the present value of a cash flow

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An investment, which has an expected return of 9.75 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 4.64 percent per year. The cash flow in 1 year from today is expected to be 26,880 dollars. What is the present value (as of today) of the cash flow that is expected to be made in 5 years?

Reference no: EM132465451

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