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An investment will generate a cash flow each year forever, with the first cash flow coming one year from today and each subsequent cash flow
An investment will generate a cash flow each
year forever, with the first cash flow
coming one year from today and each
subsequent cash flow coming exactly a year
after the previous cash flow. Starting with the
cash flow that will come 2 years from
today, each cash flow will be 1.7% greater than
the previous cash flow. The discount
rate applicable to this investment is 4.55% per
year compounded annually. The value
of this investment is $433,684.21. What is the
amount of the first cash flow this
investment will generate? Round all
intermediate calculations to 6 decimal points
Your final answer should be within $5.00 of the
correct answer choice.
$12.360.00
$7.372.63
$19.732.63
$27.105.26
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