Building is exported to generate no cash flows

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A building is exported to generate no cash flows for several years and then generate annual cash flows forever. What is the value of the building if the first annual cash flow is expected in 4 years from today, the first annual cash flow is expected to be $22,000, all subsequent annual cash flows are expected to be 1.3 percent higher than the cash flow generated in the previous year, and the cost of capital for the building is 6.0 percent?

Reference no: EM131453417

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