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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Modern Financial Markets Prices, Yields, And Risk Analysis
Authors: Mark Griffiths, Drew Winters, David W Blackwell
1st Edition
0470000104, 9780470000106
