Assume a series of monthly cash flows. The next (upcoming) cash flow is CF1 = $550. The cash...
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Accounting
Assume a series of monthly cash flows. The next (upcoming) cash flow is CF1 = $550. The cash flows will grow at a rate of 12% per year into the foreseeable future (i.e., forever). The appropriate interest rate (required rate of return) is 18% per year, compounded monthly.
Required
A. Calculate the amounts of the next three upcoming cash flows (CF1, CF2, CF3)
B. What is the present value of this growing perpetuity?
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