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A project needs an initial investment of $10m and will generate a cash flow of $0.5m after 1 year. The cash flow would then grow
A project needs an initial investment of $10m and will generate a cash flow of $0.5m after 1 year. The cash flow would then grow perpetually at a constant rate of 4%. What is the real rate of return for the project, assuming that the inflation rate is 3% each year. Express your answer in % terms rounded up to two decimal places.
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