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Bob has a project that has CF if $93 starting 2 years from today. In the...

Bob has a project that has CF if $93 starting 2 years from today. In the years after the flows grow at two percent and cobtinue in perpetuity. there is a discount rate of 19% what is the PV of the CF
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Answer #1

- Cash Flow(CF2) two years from today = $93

Therafter, it will grow(g) at 2% per annum in perpetuity.

Discount rate(r) = 19%

Calculating the Present Value of cash flow(CF) today:-

Present Value = $536.33

SO, the PV of the CF is $536.33

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