You are evaluating a project that will provide its first cash flow of $ 8 0 ,

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Question:

You are evaluating a project that will provide its first cash flow of $

80, 000

in one year.

The cash flow is expected to grow by

3 %

annually for the foreseeable future. Considering its

degree of risk, you think a discount rate of

10 %

is appropriate. The project needs an initial

investment of $

1, 200, 000 .

What would you do

?

Posted Date: May 13, 2024 02:51 AM

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You are evaluating a project that will provide its first cash flow of $ 8 0 ,

Question:

Expert Answer:

To evaluate this project we need to calculate the net present value NPV using the given info... View the full answer

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