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An investment requires 12,000 today, and produces the first cash flow of 500 in three years (year 3). Cash flow is expected to grow at
| An investment requires 12,000 today, and produces the first cash flow of 500 in three years (year 3). Cash flow is expected to grow at 2.5% a year after year 3. | |||||||||||||||
| a) What is the NPV of this investment if the discount rate is 8% ?
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