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please provide workings Question 7 Not yet answered An investment makes annual payments. The first payment of $285 is due in one year at t
please provide workings
Question 7 Not yet answered An investment makes annual payments. The first payment of $285 is due in one year at t = 1. The payments grow at a rate of 16.0% annually until t =10. Payments are then stable until t =34. Afterwards, payments grow at a rate of 2.0% annually (the payment at t =35 is 2.0% bigger that the payment at t =34) and are paid into perpetuity. Marked out of 5.00 Flag question a) What is the size of the cash flow at t =11? $ (Give answer to 2 decimal places.) b) What is the size of the cash flow at t =35? $ (Give answer to 2 decimal places.) c) What is the present value of the investment if the discount rate is 13.0%? (Give answer to 2 decimal places.)Step by Step Solution
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