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An investment, which is worth 26,400 dollars and has an expected return of 4.53 percent, is...

An investment, which is worth 26,400 dollars and has an expected return of 4.53 percent, is expected to pay fixed annual cash flows forever with the next annual cash flow expected in 1 year. What is the present value of the annual cash flow that is expected in 7 years from today?

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PV of 7th year cash flow Here, 4 A|rate per annum B Number of years C Number of compoundings per per annum 4.53% 1 8 A+C rate per period (r) 9 BxC Number of periods (n) 4.53% 10 Technology value in 2 years (FV) 1,195.92 |-26400*4.53% 12 PV of 7th y ear cash flow$ 877.03 1195.9241 (1+4.53%)17

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