Question
Your company is considering building a factory for a new product. The factory costs $620,000 and will produce a cash inflow of $31,000 in the
Your company is considering building a factory for a new product. The factory costs $620,000 and will produce a cash inflow of $31,000 in the first year. The cash inflows are expected to grow by 6% every year forever. The required return for the project is 7%.
What is the NPV of the project?
What is the break-even growth rate, i.e., the growth rate that sets the NPV to zero?
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Global Development Finance The Role Of International Banking 2008
Authors: World Bank
2008 Edition
0821373900, 9780821373903
