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ABC investment bank introduced a new financial instrument Genzyme. Investors expect Genzyme to provide zero net cashflows for the next 5 years. In the 6

ABC investment bank introduced a new financial instrument Genzyme. Investors expect Genzyme to provide zero net cashflows for the next 5 years. In the 6th year, Genzyme is expected to have cashflows of Rs 100 million, which is then expected to grow at a constant rate of 6% forever. If investors require a 10% rate of return, what is the current value of Genzyme? (Assume all cashflows ABC investment bank introduced a new financial instrument Genzyme. Investors expect
Genzyme to provide zero net cashflows for the next 5 years. In the 6th year, Genzyme is
expected to have cashflows of Rs 100 million, which is then expected to grow at a constant rate
of 5% forever. If investors require a 10% rate of return, what is the current value of Genzyme?
(Assume all cashflows occur at the end of the year.)
Answer occur at the end of the year.) Can this be solved in Excel. Please provide steps.
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