Question 3 (12 marks) Consider the following infinite series of cash flows, of which alternate cash flows of $9 and $5 take place between t=2 and t=26. All other cash flows, including those att0,t1 and from t=27 onwards are $5 per year (with the only except of Year 47, at which the cash flow is $1). Time(yr.) 0 1 2 3 4 5 ... 25 CF $5 $5 $9 S5 $9 S5 ... 55 Suppose the effective annual rate is 5%. 26 $9 27 $5 28 ... 45 $5 ... $5 46 $5 47 48 49 ... S1 $5 $5 ... a) Calculate the present value (att-0) of this cash flow series. (10 marks) [Hints: (1) What is the effective) 2-year rate (E2YR)? (2) Can assume the "basic" cash flows are $5 each year.) b) Is it possible to find the future of this cash flow series? Explain. (2 marks)