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B. A project generates the following sequence of cash flows over six years: Year Cash Flow (in millions) -$50.00 $4.00 $5.00 $6.00 $7.33 $8.00 $8.25
B. A project generates the following sequence of cash flows over six years: Year Cash Flow (in millions) -$50.00 $4.00 $5.00 $6.00 $7.33 $8.00 $8.25 i. Calculate the NPV over the six years. The discount rate is 11%. 3 Marks ii. This project does not end after the sixth year, but instead will generate cash flows far into the future. Estimate the terminal value, assuming that cash flows after year 6 will continue at $8.15 million per year in perpetuity, and then recalculate the investment's NPV. Marks
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