Growth Enterprise believes its latest project, which will cost $80,000 to install, will generate a perpetual growing stream of cash flows. Cash flows at the end of this year will be $5,000 and cash flows in future years are expected to grow indefinitely at an annual rate of 5%.
A. If the discount rate for this project is 10%, what is the projected NPV?
B. What is the project IRR?
Please see attached template 6-38© BrainMass Inc. brainmass.com August 20, 2018, 8:17 am ad1c9bdddf