Question
The next two questions use the following data: A project needs an investment of $120 in Year 0 and an investment of $216 in Year
The next two questions use the following data:
A project needs an investment of $120 in Year 0 and an investment of $216 in Year 1. It will produce cash inflows starting from Year 3. Year 3 cash flow is expected to be $$24 and this is expected to growth indefinitely at an annual rate of 4%. The cost of capital is 10%.
What is the PV in Year 0 of the all investments?
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Financial Performance
Authors: Marc Bertoneche, Rory Knight
1st Edition
0750640111, 978-0750640114
