What is the present value of all future cash flows

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Question: You are the manager of an Internet company with strong growth potential. Mechanical analysts that flows cash flow will grow 40% annually for the next few years five years. Subsequently, with the increase of competition, cash flow growth should slow down to 3% a year and continue at these levels of growth forever. Your business has just announced a cash flow of $5 million. What is the present value of all future cash flows if the rate of interest is 7%? (Assume that all streams of case are produced at the end of each year)

Reference no: EM133430180

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