finc5001

Gumtree Ltd will invest in an asset that is currently trading at $171,000. This is expected to generate a quarterly cash flow that grows at a constant rate of 6% p.a. compounded quarterly. The expected cost of capital is 10% p.a. compounded annually. How much would the first cash flow be from such an asset? $1,961.37 $1,558.44 O $1,107.52 O $1,324.61