Question: Consider a project costing $1 million. Suppose the project generates cash flows at the end of each year equal to $120,000 starting at the end

Consider a project costing $1 million. Suppose the project generates cash flows at the end of each year equal to $120,000 starting at the end of the second year. (i) Compute the NPV of this project assuming a cost of capital of 10%. (ii) Compute the IRR of this project. (iii) Is the IRR unique? Explain (I assume this is a perpetuity)

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