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An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash
An investment is expected to generate 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 annually. We know that the cash flow expected in 3 years from today is expected to be $9,000 and the cash flow expected in 7 years from today is expected to be $10,000. What is the cash flow expected to be in 5 years from today?
A. | $9,486.83 | |
B. | Answer is not possible or not listed | |
C. | $10,822 | |
D. | $8,538.15 | |
E. | $9,740. |
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