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You plan to invest $113,636 in a project that will generate $10,000 at t=2 and then subsequent payments forever with each one g% bigger than
You plan to invest $113,636 in a project that will generate $10,000 at t=2 and then subsequent payments forever with each one g% bigger than the previous payment. Assume the discount rate is 10%. What is the minimum constant rate g that the cash flows would have to grow in order for the projects cash flows to have a positive NPV?
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