Question: Project cash flows are provided below. The project is assumed to have an infinitely long life with post year 4 cash flows growing at 3%

Project cash flows are provided below. The project is assumed to have an infinitely long life with post year 4 cash flows growing at 3% in perpetuity. WACC is 10%. Compute NPV. (Hint: 'present value' of terminal value at t=4 is FCFF4*(1+g)/(WACC-g))

0 1 2 3 4
FCFF -100 75 85 95 105

A) 1237

B) 1545

C) 182

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