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An investment is expected to generate annual cash flows forever. The first annual cash flow is...

An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate annually. We know that the cash flow expected in 3 year(s) from today is expected to be 1,830 dollars and the cash flow expected in 9 years from today is expected to be 3,240 dollars. What is the cash flow expected to be in 5 years from today?

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rate Er(future value/present value)A(1/time)-1 9.99% (3240/1830) (1/6)-1 Annual growth rate $2,213.85 1830*(1+0.099)42 Cash flow expected to be in 5 years-

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