The cash flow in year 1 is $2,000. Starting year 2, the cash flow will grow at

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The cash flow in year 1 is $2,000.

Starting year 2, the cash flow will grow at X% per year forever.

The initial cost is $6,000.

The required return is 16%.

The net present value of this project is $10,000.

What does X need to be?

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Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Feb 21, 2024 04:37 AM

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The cash flow in year 1 is $2,000. Starting year 2, the cash flow will grow at

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Heres what we know Initial cost6000 Cash flow in year 12000 Cash flow growth rateX Required return16 ... View the full answer

Corporate Finance

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