Question: Texas Utensils is considering a new project, which would cost $ 3 5 0 , 0 0 0 initially and would generate a revenue of

Texas Utensils is considering a new project, which would cost $350,000 initially and would generate a revenue of $42,000 next year. The revenue would grow at 3% per year forever. If the cost of capital is 8%, what is the NPV of this new project?
$175,000
$490,000
$840,000
The NPV is an infinite # since the cash flow will grow into an infinitely large quantity.
Texas Utensils is considering a new project, which would cost $350,000

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