QUESTION $8$

A dry cleaning store is expected to make annual cash flows forever. The cost of capital for the store is $14\mathrm{.}36$ percent. The next annual cash flow is expected in one year from today and all subsequent cash flows are expected to grow annually by $3\mathrm{.}37$ percent. What is the value of the dry cleaning store if the cash flow in $4$ years from today is expected to be $$238,000\mathrm{.}00?$

$$1,500,510\mathrm{.}26($plus or minus $10$ dollars$)$

$$1,960,630\mathrm{.}33($plus or minus $10$ dollars$)$

$$1,266,142\mathrm{.}77($plus or minus $10$ dollars$)$

$$2,165,605\mathrm{.}10($plus or minus $10$ dollars$)$

$$1,657,381\mathrm{.}62($plus or minus $10$ dollars$)$