Question: hello, I can't understand this question, could you help me please ? Assume perfect capital markets and no uncertainty. A firm can invest in a
hello, I can't understand this question, could you help me please ?
"Assume perfect capital markets and no uncertainty. A firm can invest in a project costing $2,000 today and delivering a cash flow starting at $100 in one year time, which will grow at 5% per year forever.
Should the firm invest in this project if the interest rate is 9%? Explain why or why not."
thanks in advance
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