Expected to generate no cash flows for several years

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Reference no: EM131011416

A building is expected 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 5 years from today, the first annual cash flow is expected to be 18,550 dollars, all subsequent annual cash flows are expected to be 1.88 percent higher than the cash flow generated in the previous year, and the cost of capital for the building is 12.06 percent?

Reference no: EM131011416

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