Reference no: EM133120428

A project has expected cash flows of 555 next year {year 1]. These cash flows will grow at 6% per year through year 6. Growth from year 6 to T will he -2%, and this negative growth will continue in perpetuity. Assume a discount rate of 8%. What is the present value today [year {i} ofthese cash flows? [For this problem, feel free to use Excel, or you can do this by hand using annuity and perpetuity formulas. Howeyer, you should he comfortable doing this type of problem either way. If you're not, I encourage you to do it both ways.}