Question No: 02 This is a subjective question, hence you have to write your answer in the Text-Field given below. Alcon Inc. is planning to invest in in-house developed mobile apps for eye care. They have forecasted that with the new mobile apps the following are the expected cash flows that will be generated: This project will generate $10 million at end of Year I which will grow at a rate of 10% for next 3 years from Year 1 onwards (i.e.1-2.2-3.3-4 years). From Year 4 onwards, the growth rate in cash flows will stabilize to 3% per year till perpetuity. If the hurdle rate is 12% pa. compounded continuously, what is the Present Value of the Cash Flows generated. 151