What is the present value of the phone

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Problem 1: Oasis has developed a new hands-free phone that can be plugged into your ear. The new gadget is now ready for production and development. The Oasis telephone company estimates that the phone's first annual cash flow will be 200,000 euros a year, starting 2 years from today. Cash flow will increase by 5% forever. What is the present value of the phone if the rate of return is 10 percent?

Reference no: EM132658086

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