A project is expected to produce a cash flow of $10,000 next year. This is expected to grow at a rate of 25% for the two years before slowing down to an estimated eternal growth rate of 5% a year. If you require a 15% return on this project.

What is the maximum amount you should be willing to invest in it?

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To determine the maximum amount you should be willing to invest in the project we can use the discou... View the full answer