Question: Suppose we have a 5-year project, with an initial cost of $2,000, the cash flow of year 1 is $500, the growth rate is 8%,

Suppose we have a 5-year project, with an initial cost of $2,000, the cash flow of year 1 is $500, the growth rate is 8%, and the discount rate is 10%. What is the NPV when the growth rate = 6% and the discount rate = 12%?

10.49%

15.49%

13.49%

18.49%

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