Question
Growth Enterprises believes its latest project, which will cost $84,000 to install, will generate a perpetual growing stream of cash flows. Cash flow at the
Growth Enterprises believes its latest project, which will cost $84,000 to install, will generate a perpetual growing stream of cash flows. Cash flow at the end of the first year will be $9,000, and cash flows in future years are expected to grow indefinitely at an annual rate of 4%.
a. If the discount rate for this project is 10%, what is the project NPV?
b. What is the project IRR?
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Advances In Entrepreneurial Finance
Authors: Rassoul Yazdipour
2011th Edition
148998190X, 978-1489981905
