I confused about that part I circled. Why is not (30k*1.08) / ( (0.15-0.08)*1.15 )?

Thank you

Question Eight You are evaluating a project that requires an initial investment of $350,000, and that will provide a net cash inflow of $30,000 during the rst year. The net cash inflow is projected to grow at 8% pa constantly forever. Assuming the cost of capital is 15%: (a) Is this project acceptable? (b) If you are uncertain about the projected 8% growth rate, at what constant growth rate will the company just break even? ANSWER O (a) 30,000 0.15 0.08 n F NPV = 2 C ' = 350,000 $78,571.43 ,= (1+k) Because the project has a positive NPV, it should be accepted. (b NPV= Z ,. (1C + k): 450,000 + M = 0 0.15 g g = 6.43%