What is the present value of the cash flow expected

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An investment, which has an expected return of 18.2%, 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 7.4% per year.

The cash flow expected in 1 year from today is expected to be $80,000. What is the present value (as of today) of the cash flow that is expected to be made in 10 years from today?

Reference no: EM131937027

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