Answer
$6.77$ million dollars
Work Step by Step
The flow of rate of the investment stream can be expressed as: $R(t)=1.8 (1-\dfrac{7}{100})^t$ dollars per year million .
We have: $r=0.0475$ and $T=5 \ years$
The future value is equal to: $\int_0^5 1.8 (1-\dfrac{7}{100})^t e^{0.0475 (5-t)} \ dt =8.58 $ million dollars
Therefore, the present value is equal to:$\dfrac{\ Future Value}{e^{rT}}=\dfrac{8.58}{e^{(0.0475)(5)}}=6.77$ million dollars