Question

An investment costs $3,298 today and provides cash flows at the end of each year for...

An investment costs $3,298 today and provides cash flows at the end of each year for 21 years. The investments expected return is 11.4%. The projected cash flows for Years 1, 2, and 3 are $188, $272, and $396, respectively. What is the annual cash flow received for each of Years 4 through 21 (i.e., 18 years)? Assume the same payment for each of these years. (Round answer to 2 decimal places. Do not round intermediate calculations).

Homework Answers

Answer #1

Annual cash flows from year 4-21 = $482.62 approx. Please use annuity table for PVAF

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