An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate annually. We know that the cash flow expected in 1 years from today is expected to be $40.00 and the cash flow expected in 4 years from today is expected to be $55 64 What is the cash flow expected to be in 3 years from today?(Round the value to 100th decimal)

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter3: International Financial Markets
Section: Chapter Questions
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An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash
flows are expected to grow at a constant rate annually. We know that the cash flow expected in 1 years from today is expected to be $40.00 and
the cash flow expected in 4 years from today is expected to be $55 64 What is the cash flow expected to be in 3 years from today?(Round the
value to 100th decimal)
Transcribed Image Text:An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate annually. We know that the cash flow expected in 1 years from today is expected to be $40.00 and the cash flow expected in 4 years from today is expected to be $55 64 What is the cash flow expected to be in 3 years from today?(Round the value to 100th decimal)
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