Do you have any idea on how to comment on NPV for perpetuity projects that will not be terminated I have calculate the value and found NPV i is 7324 9 and NPV ii is 7329 26 NPV i is financed through all equity while NPV ii is financed partly by debt Please clarify and help Thank you 3 BMAN30111 Question 1 continued (iii) Calculate again the NPVs of parts (i) and (ii) by assuming that the project is not terminated in 2026 and that, instead, it is expected to produce the same cash flow (i e with zero future growth in cash flows) as that for the year 2026 in perpetuity Show and explain your calculations and comment on your findings (10 marks)

Question

Do you have any idea on how to comment on NPV for perpetuity  projects that will not be terminated  I have calculate the value and found NPV i is 7324 9 and NPV ii is 7329 26  NPV i is financed through all equity while NPV ii is financed partly by debt  Please clarify and help  Thank you  3 BMAN30111 Question 1 continued (iii) Calculate again the NPVs of parts (i) and (ii) by assuming that the project is not terminated in 2026 and that, instead, it is expected to produce the same cash flow (i e  with zero future growth in cash flows) as that for the year 2026 in perpetuity  Show and explain your calculations and comment on your findings  (10 marks)

SolutionInn · Accepted Answer

The Answer is in the image, click to view ...

Question: Do you have any idea on how to comment on NPV for perpetuity/ projects that will not be terminated. I have calculate the value and

Step by Step Solution

Students Have Also Explored These Related Accounting Questions!