Answer
$8.608$ million dollars
Work Step by Step
The flow of rate of the investment stream can be expressed as: $R(t)=1.8 \times (1+\dfrac{3}{100})^t$ dollars per year million .
We have: $r=0.0475$ and $T=5 \ years$
The future value is equal to: $\int_0^5 1.8 \times (1.03) ^t e^{0.0475 (5-t)} \ dt =10.92 $ million dollars
Therefore, the present value is equal to:$\dfrac{\ Future Value}{e^{rT}}=\dfrac{10.916}{e^{(0.0475)(5)}}=8.608$ million dollars