Assume that a project earns $17min in each of the next two years (cash flows are received at the end of each year). Then in year three the cash inflows are 3% higher compared to the previous year, but then remain constant. The project has an infinite life. Further assume that the discount rate is 16%. 

What is the present value of the cash flows?

Answer rating: 100% (QA)

To calculate the present value of the cash flows we need to discount each cash flow to its present v... View the full answer