Question
A project requires an initial cost of $5,000 upfront. Starting from the fourth year, It will generate a positive cash flow of $50 at the
A project requires an initial cost of $5,000 upfront. Starting from the fourth year, It will generate a positive cash flow of $50 at the end of each year in perpetuity (so the first payment of the perpetuity arrives 4 years from now). Suppose you can earn a 10% of return on very similar investments. What is the NPV of the project?
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The Economics Of Financial Markets
Authors: Roy Bailey
1st Edition
051111415X, 9780511114151
