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A project will require an initial investment of 190.51 and will generate positive cash flows at the end of the year for 12 years. Let

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A project will require an initial investment of 190.51 and will generate positive cash flows at the end of the year for 12 years. Let g be an unknown constant between 0 and 0.05. The first positive cash flow will occur one year after the initial investment, and will be in the amount of 25(1+g). Each subsequent cash inflow will increase by 100g%. Assuming that the cost of capital for the project is 12%, determine the value of g for which the project will break even. 4.30% 3.13% 3.52% 3.91% 4.69%

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