Solution:-
Perpetuity value of the cash flow stream at year 20 = $3,200/4.8% = $66,666.67
Perpetuity value of the cash flow stream at year 10 = $66,666.67*(PV factor 10 years)
Perpetuity value of the cash flow stream at year 10 = $66,666.67*[(1/(1.048)10]= $66,666.67
Perpetuity value of the cash flow stream at year 10 = $66,666.67*[0.626]= $41,715.35
Given a discount rate of 4.8 percent per year, what is the value at Year 10...
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