Shawn Paschal has been working on an advanced technology for use in the green fuel production at King Fisher Aviation. He is almost finished with the technology and anticipates the first cash flow from the technology to be $200,000 received 2 years from today. Subsequent annual cash flows will grow at 4.5 percent in perpetuity. What is the present value of the technology if the discount rate is 12 percent? Fill in the value in the spreadsheet.

********* WHAT IS VALUE ONE PERIOD BEFORE? and how to calculate?

********* WHAT IS FIRST PAYMENT VALUE? and how to calculate?

$ 200,000 First cash flow Years until first payment Growth rate Discount rate 4.5% 12.0% Outout area: Value one period before first payment Value today $2,380,952.38 $ 200,000 First cash flow Years until first payment Growth rate Discount rate 4.5% 12.0% Outout area: Value one period before first payment Value today $2,380,952.38