Question: Dear All, Please help me to find the step by step calculation of below question: Consider a project that has an NPV of $100, and

Dear All,

Please help me to find the step by step calculation of below question:

  1. Consider a project that has an NPV of $100, and revenue in each period is expected to be $120. If NPV increases by 10 percent for every 2.5 percent rise in revenue, which of the values of revenue to breakeven?
  2. A project costs $240 today and has a future cash flow of $56 per year forever. If we wait one year, the project will cost $280 but the future cash flows will be $62 per year forever. Assuming a discount rate of 10%, find the value of the option to wait

thank you

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