Assume that a project earns $13$13 mln over the first two years. Then starting from year three
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Question:
Assume that a project earns $13$13 mln over the first two years. Then starting from year three the cash inflows grow annually with 2%2%. The project has an infinite life. Further assume that the discount rate is 12%12%. What is the present value of these cash flows?
a.
132.47
b.
110.06
c.
108.33
d.
127.68
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