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What is the maximum amount you should be willing to invest

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Question - A project is expected to produce a cash flow of $20,000 next year. The cash flow is expected to grow at a rate of 8% indefinitely. If the opportunity cost of capital is a constant 12%, what is the maximum amount you should be willing to invest in the project?

$500,000

$540,000

$560,000

None of the above

Reference no: EM132445693

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