Question: You are considering a project that will cost 1,430 to invest in today, and will generate cash inflows of 42, 61, and 112 over the
You are considering a project that will cost 1,430 to invest in today, and will generate cash inflows of 42, 61, and 112 over the next three years, respectively, and the cash flows will grow at a constant rate of 0.02 (or 2%) following year 3 and continuing forever. The discount rate is 0.12. What is the NPV of the project (rounded to 0.01)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
