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Growth Enterprises believes its latest project, which will cost $99,000 to install, will generate a perpetual growing stream of cash flows. Cash flow at the
| Growth Enterprises believes its latest project, which will cost $99,000 to install, will generate a perpetual growing stream of cash flows. Cash flow at the end of the first year will be $7,000, and cash flows in future years are expected to grow indefinitely at an annual rate of 5%. If the discount rate for this project is 10%, what is the project NPV? What is the project IRR? |
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