Michelle owns a laser tag center that is worth $570,000.00 and is expected to make annual cash flows forever. The cost of capital for the laser tag center is 9.34%. The next annual cash flow is expected in 1 year and is expected to be $46,000.00. All subsequent cash flows are expected to grow annually at a constant growth rate. What is the cash flow produced by the laser tag center in 2 years expected to be? O $46,584.12 (plus or minus 10 dollars) O $50,296.40 (plus or minus 10 dollars) O $54,994.08 (plus or minus 10 dollars) O $47,175.66 (plus or minus 10 dollars) none of the answers are within 10 dollars of the correct answer
Michelle owns a laser tag center that is worth $570,000.00 and is expected to make annual cash flows forever. The cost of capital for the laser tag center is 9.34%. The next annual cash flow is expected in 1 year and is expected to be $46,000.00. All subsequent cash flows are expected to grow annually at a constant growth rate. What is the cash flow produced by the laser tag center in 2 years expected to be? O $46,584.12 (plus or minus 10 dollars) O $50,296.40 (plus or minus 10 dollars) O $54,994.08 (plus or minus 10 dollars) O $47,175.66 (plus or minus 10 dollars) none of the answers are within 10 dollars of the correct answer
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:QUESTION 3
Michelle owns a laser tag center that is worth $570,000.00 and is expected to make annual cash flows forever. The cost of capital for the laser tag center is
9.34%. The next annual cash flow is expected in 1 year and is expected to be $46,000.00. All subsequent cash flows are expected to grow annually at a
constant growth rate. What is the cash flow produced by the laser tag center in 2 years expected to be?
O $46,584.12 (plus or minus 10 dollars)
O $50,296.40 (plus or minus 10 dollars)
O $54,994.08 (plus or minus 10 dollars)
O $47,175.66 (plus or minus 10 dollars)
O none of the answers are within 10 dollars of the correct answer
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