Question:1. You are an investor evaluating a project which is going to
take 8 years. The...
Question
1. You are an investor evaluating a project which is going to
take 8 years. The...
1. You are an investor evaluating a project which is going to
take 8 years. The project will pay $500,000 at the beginning of
each year starting a year from now. These payments will grow at 2%
for the first two years, then 3.5% for the following two years and
then stay consistent at 4% until the end of the project. In the
last year of the project you will receive a lump sum of $1 million
while also paying a lump sum of $200,000. If your expected retrun
on this project is 12.5%, what is the PV of the project?