Consider an investment project for which the cash flow pattern repeats every four years indefinitely as shown below. At an interest rate of 8% compounded annually, compute the capitalized-equivalent amount for this project. You can use the infinity interest factors which were provided in the resources section of the quiz.

In the diagram X1 = 700, X2 = 600, X3 = 500, X4 = 400:

cash flow diagram..X1 comes in year 1, X2 comes in year 2, X3 comes in year 3, X4 comes in year 4.. The pattern repeats..

Capitalized amount for the project is Rs.