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You are analyzing an investment decision in which you will have to make an initial investment of $10 million and you will be generating annual
You are analyzing an investment decision in which you will have to make an initial investment of $10 million and you will be generating annual cash flows to the firm of $2 million every year growing at 5% a year, forever.
a) estimate the NPV of this project if the cost of capital is 10%
b) estimate the IRR of this project
Please let me know how to do this problem on a financial calculator (example, N=# I/YR = # or whatever buttons will be used) Thanks!
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