Generate perpetual growing stream of cash flows
Course:- Financial Management
Reference No.:- EM13895735

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Growth Enterprises believes its latest project, which will cost $99,000 to install, will generate a perpetual growing stream of cash flows. Cash flow at the end of the first year will be $7,000, and cash flows in future years are expected to grow indefinitely at an annual rate of 5%.

If the discount rate for this project is 10%, what is the project NPV?

What is the project IRR?

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