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A project's cash flows are $100,000 per year from years 1 through 6. Between years 6 and 7 these cash begin to grow at 5%.

A project's cash flows are $100,000 per year from years 1 through 6. Between years 6

and 7 these cash begin to grow at 5%. You expect this growth to continue forever. What

is the present value (at time 0) of the project's cash flows if the opportunity cost of capital

is 9%?

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