Suppose that one year from now you will receive $300 and that at the end of every year thereafter you will receive a payment that is 2% larger than the prior payment. If the cost of capital is 7% what is this stream of cash flows worth today?
Suppose that one year from now you will receive $550. At the end of each of the next four years you will receive a payment that is 4% bigger than the prior payment. Following year five you will receive a payment at the end of every year that is 3% larger than the prior payment. If the cost of capital is 12% what is the this stream of cash flows worth today?