A project costs $15550 and produce a growing perpetuity of cash flows, beginning with a cash flow

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A project costs $15550 and produce a growing perpetuity of cash flows, beginning with a cash flow of $221 in year one and growing at the inflation rate of 2.5%. The real rate of interest is 2.0%.

What is the NPV?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Posted Date: Nov 10, 2023 01:07 AM

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A project costs $15550 and produce a growing perpetuity of cash flows, beginning with a cash flow

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Expert Answer:

To calculate the Net Present Value NPV we need to dis... View the full answer

Fundamentals of Corporate Finance

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