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You are considering a project that will cost you $60,000 today and is projected to earn $5,000 next year, with the inflows growing at a
You are considering a project that will cost you $60,000 today and is projected to earn $5,000 next year, with the inflows growing at a 2% annual rate in perpetuity thereafter. If your cost of capital is 7%, what is the NPV of this project?
a) -$10,000 | ||
b) $2,500 | ||
c) $40,000 | ||
d) $65,000 | ||
e) $190,000 |
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