Problem:
Consider an investment that provides the following cash flows: for 10 years, no cash flows; for 15 years after that $120 per year; for 20 years after that $200 per year; forever afterwards $350 per year. The required return for this investment is 7%
Required:
Question 1: What is the value of this investment to you in 10 years?
Question 2: What is the value of this investment to you in 20 years?
Note: Explain all calculation and formulas.