An investment opportunity requires an outlay

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An investment opportunity requires an outlay of $x today but is not expected to have any cash inflows for the coming six years. at the end of year 6, its expected cash flow is $670.05 and that is expected to grow by 5% per year in perpetuity. the RRR on the investment is 12% per year. Calculate the fair value of x.

Reference no: EM131447475

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