Question: Sample Problem 1 You are evaluating a project with estimated cash flow next year of $ 1 million At a discount rate of 6 %

Sample Problem 1
You are evaluating a project with estimated cash flow next
year of $1 million
At a discount rate of 6%, what is the PV of this project if its
expected to last for 1 year? 5 years? 10 years? 25 years?
Forever? (Assume the cash flows are the same every year)
Now hold the project life at 10 years. What is the value at a
rate of 0%?3%?6%?9%?12%?

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