Question
A project is expected to produce a cash flow of $20,000 next year.The cash flow is expected to grow at a rate of 8% indefinitely.If
A project is expected to produce a cash flow of $20,000 next year.The cash flow is expected to grow at a rate of 8% indefinitely.If the opportunity cost of capital is a constant 12%, what is the maximum amount you should be willing to invest in the project?
-$500,000
-$540,000
-$560,000
-none of the above
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Entrepreneurial Finance
Authors: Chris LeachJ LeachRonald Melicher
3rd Edition
0324561253, 9780324561258
