Question
A proposed project will cost $2.7 million to start up today. It will generate cash flows of $0 in years 1-3 and $299,000 in year
A proposed project will cost $2.7 million to start up today. It will generate cash flows of $0 in years 1-3 and $299,000 in year 4, after which the yearly cash flows will increase at a terminal growth rate of 3% in perpetuity. With a discount rate of 15% what is the project's PI?
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The Business Of Personal Finance
Authors: Joseph Calandro Jr, John Hoffmire
1st Edition
1032104562, 978-1032104560
