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A firm with a 10% cost of capital makes a final cash flow projection of $10M for an infinitely lived project. The firm estimates a
A firm with a 10% cost of capital makes a final cash flow projection of $10M for an infinitely lived project. The firm estimates a terminal value at the end of the projection period equal to $210M, which implies that the firm projects cash flows beyond the projection period to grow at what constant periodic rate forever?
4.76%
5%
5.24%
10%
None of the above
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