Question: How can I solve with this question? There are two question. An investment makes annual payments. The rst payment of $250 is due in one

How can I solve with this question?

There are two question.

An investment makes annual payments. The rst payment of $250 is due in one year at t=1. Payments grow at a rate of 16% annually until 1:24. Payments then are stable until 75235. Afterwards, payments grow at a rate of 2% annually (the payment at 15:36 is 2% bigger than the payment at 13:35) and are paid in perpetuity. 1051. What is the cash ow at i=36? (Report the 15236 value) (a) $7,745.94 1052. What is the present value of the investment's cash ows at an annual discount rate of 14%? (a) $8,917

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