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A project costs $4,001 today, generates a cash flow of $170 in one year and this cash flow grows 5% per year forever. Cash inflows
A project costs $4,001 today, generates a cash flow of $170 in one year and this cash flow grows 5% per year forever. Cash inflows are generated in annual increments, starting in one year, and continuing forever. Investors have a 9% cost of capital. What is the NPV of this project?
Less than $200 | ||
Between $200 and $300 | ||
Between $300 and $1000 | ||
More than $1000 |
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