# Consider the following cash flow: $50 next year, and in each subsequent year the cash flow grows

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## Question:

Consider the following cash flow:

$50 next year, and in each subsequent year the cash flow grows by 6%.

The cash flow series continues forever.

If the interest rate is 10%, what is the PV of this cash flow?

**Related Book For**

## Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill