You have been asked to evaluate an infinitely lived project. Sales in the first year are projected to be $100. Costs are projected at $50. There is no depreciation, and the tax rate is 30%. The real required return is 10%. The inflation rate is projected to be 8%. Sales and costs will increase at the rate of inflation. The project costs $300. What is the NPV?

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of an infinitely lived project we can use the formu... View the full answer