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Company ABC invests in a long-term project that will start generang cash flows 10 years from now (and will then connue generang cash flows forever).
Company ABC invests in a long-term project that will start generang cash flows 10 years from now (and will then connue generang cash flows forever). The first cash flow is going to be equal to $22 million. Cash flows will then grow 2% per year forever. If the project costs $460 million today, is it a good investment if interest rates are (and are going to be forever) equal to 5%?
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