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A project pays the investor $5 at t1 and t2. From t3 on, the cash flow will increase by 5%. For example, the cash flow
A project pays the investor $5 at t1 and t2. From t3 on, the cash flow will increase by 5%. For example, the cash flow at t3 is $5.25 and the cash flow at t4 is $5.5125. The rate of return is 15%. Please calculate the project's present value. I've used the formula for growing perpetuity and confuse what to do next for the project PV. Can someone help me
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
