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You are charged with evaluating a massive infrastructure project. It will cost $5 billion to establish the project, the project will generate $.75 billion of

You are charged with evaluating a massive infrastructure project. It will cost $5 billion to establish the project, the project will generate $.75 billion of revenue (net of costs) in the first year, and you expect this to increase by 5% per year for 10 years. After 10 years, the project will close, and you estimate that assets will be sold for $1 billion at the time of closure. You assign this project a rate of return of 12% per year. Based on your analysis, what is your recommendation on this project?

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