Question
You consider investing in a new project. To start the project, you need to pay $94 today. After this the project will pay a stream
You consider investing in a new project. To start the project, you need to pay $94 today. After this the project will pay a stream of cash flow that starts at $6 in a year and grows by 1% per year afterwards for 10 years (no cash-flows after that). Calculate the net present value of the project if your discount rate is 7% per year? (round your answer to the nearest penny)
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
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