Question
A firm is considering an investment opportunity. The firms cost of capital for this project is 14%. The project will require an initial investment of
A firm is considering an investment opportunity. The firms cost of capital for this project is 14%. The project will require an initial investment of $7 million and it will generate cash flows $816,000 in the first year and $1,000,000 in the second year. After that, the cash flow will grow at 4% annually forever.
What is the NPV of this project?
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Introductory Econometrics For Finance
Authors: Chris Brooks
3rd Edition
1107661455, 9781107661455
