What is the value of a building that is expected to generate no cash flows for several years and then generate fixed annual cash flows of $$94,100\mathrm{.}00$ per year forever if the first annual $$94,100\mathrm{.}00$ cash flow is expected in $4$ years and the appropriate discount rate for the building is $8\mathrm{.}20$ percent?

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The concept well use here is the present value of a perpetuity A perpetuity is a cash flow that cont... View the full answer