Question
A project has an initial cost of $30 million. The project is expected to generate a cash flow of $3.7 million at the end of
A project has an initial cost of $30 million. The project is expected to generate a cash flow of $3.7 million at the end of the first year. All the subsequent cash flows will grow at a constant growth rate of 4% forever in future. If the appropriate discount rate of the project is 11%, what is the profitability index of the project?
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Public Finance And Public Policy
Authors: Arye L. Hillman
2nd Edition
0521738059, 978-0521738057
