Question:Growth Enterprises believes its latest project, which will
cost $87,000 to install, will generate a perpetual...
Question
Growth Enterprises believes its latest project, which will
cost $87,000 to install, will generate a perpetual...
Growth Enterprises believes its latest project, which will
cost $87,000 to install, will generate a perpetual growing stream
of cash flows. Cash flow at the end of the first year will be
$6,000, and cash flows in future years are expected to grow
indefinitely at an annual rate of 7%.
a. If the discount rate for this project is 13%, what is the
project NPV? (Do not round intermediate calculations.)
b. What is the project IRR? (Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal
places.)