Question: Musk is also considering a long - term R&D project on rechargeable batteries ( Project 2 ) . The cost of this project is $

Musk is also considering a long-term R&D project on rechargeable batteries (Project 2). The cost of this project is $68M today. The project will generate $22M in the first year (t-1) and this cash flow
is expected to grow by 2% each year forever. What is the NPV of this project? Should Musk accept this project?

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