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Q7) You can't you are entitled to receive an annual cash flow of amount A at end of each year, starting 1 year from now,

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Q7) You can't you are entitled to receive an annual cash flow of amount A at end of each year, starting 1 year from now, except no cash flow at end of fear 4 and year 5. The last cash ! flow will be paid at the end of year 8. At the end of 3rd year after you receive the 3rd payment, someone offerer offers you X andant of lump sum cash flow to buy the right to receive the rest of the cash flows. At an annual interest rite of i%, calulate the minimum amount of t you are willing to accept the offer A 18,500 : 10%

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