The cost of capital for the laundromat is 437 percent what


A laundromat is expected to produce regular annual cash flows of 68,059 dollars with the first regular cash flow expected later today and the last regular cash flow expected in 5 years from today. In addition to the regular cash flows of 68,059 dollars, the laundromat is also expected to produce an extra cash flow of 51,646 dollars in 6 years from today. The cost of capital for the laundromat is 4.37 percent. What is the value of the laundromat?

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Financial Management: The cost of capital for the laundromat is 437 percent what
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