A building is expected to generate no cash flows for several years and then generate...
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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 6 years, the first annual cash flow is expected to be 17,200 dollars, all subsequent annual cash flows are expected to be 0.95 percent higher than the cash flow generated in the previous year, and the cost of capital for the building is 15.71 percent?
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