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Consider a project that will pay you $20,000 in each of the next 5 years and $30,000 in each of the following 5 years. After
Consider a project that will pay you $20,000 in each of the next 5 years and $30,000 in each of the following 5 years. After that, the projects cash flows will grow by 3 percent per year indefinitely (so that the year 11 cash flow is $30,900). If your required rate of return is 15 percent, what is the most youd be willing to pay for this project?
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