You have a project that costs $10$ today and pays a cash flow each year thereafter. Next year the cash flow is $0\mathrm{.}5$ and the years after that it grows at a rate of $5\%.$ The cost $o$f capital the first year is $5\%.$ The second year it is $7\mathrm{.}5\%$ and from then onwards it is $10\%.$ What is the NPV of this project? Correct answer: $0\mathrm{.}709$