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g. The PV of a stream of 10 CFs is -$25,000. You can think about this as paying 25,000 to receive a stream of 10
g. The PV of a stream of 10 CFs is -$25,000. You can think about this as paying 25,000 to receive a stream of 10 CFs. The first CF starts next year and is equal to $2,000. Then the next 5 CFs grow at 20% (over the prior year). The next 2 CFs are $0; the last 2 CFs are equal to $27,000. What is the rate of return of this investment?
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