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A projects 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 projects 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 projects cash flows if the opportunity cost of capital is 9%?
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