Question
An investment requires 35,000 today, and produces an yearly cash flow of 3000 in perpetuity. Cash flow is expected to grow at 3% a year.
An investment requires 35,000 today, and produces an yearly cash flow of 3000 in perpetuity. Cash flow is expected to grow at 3% a year.
a.What is the NPV of this investment if the discount rate is 8%?
b.What is the rate of return of this investment?
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
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