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Firm XYZ is evaluating a 10-year project with year=0 annual cash flow of $90 ml. and growing at 3.5% per year. If the discount rate
Firm XYZ is evaluating a 10-year project with year=0 annual cash flow of $90 ml. and growing at 3.5% per year. If the discount rate attributed to the project is 8.5%, what is the present value of these cash flows net of the initial (t=0) investment of 380 ml.? (Use the present value of the growing annuity formula with end-of year payments.)
A) 4573.3
B) 320.1
C) -718.3
D) 297.0
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