Expected cash flow stream

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Reference no: EM13873356

You have been asked to analyze the following potential project. The expected cash flow stream is $20,000 for year 1 with an expected 4% growth rate per year for the next 3 years.

If your cost of capital is 10%, how much would you be willing to invest in this 4 year project?

So if the upfront cost of the project was $70,000, should you say yes to the project?

Reference no: EM13873356

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