Growth Enterprises believes its latest project, which will cost $80,000 to install, will generate a perpetual growing stream of cash flows. Cash flows at the end of the first year will be $5,000, and cash flows in future years are expected to grow indefinitely at an annual rate of 6%. Given the discount rate is 12%, what is the NPV of this project?

Multiple Choice

• -30,000

• 3,333.33

• 30,000

• -38,333.33