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You notice the cash flow were wrongly predicted. Now you know you will receive $100 the first year and after that this cash flow will
You notice the cash flow were wrongly predicted. Now you know you will receive $100 the first year and after that this cash flow will grow at 5% per year. The initial investment is the same. What is the internal rate of return for this project? Given this IRR do you accept or reject the project? For the comparison use the WACC computed in the previous point.
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