What is the npv of the project if the discount rate

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A project costs $12.2 million today to get started and will produce after-tax cash flows of $2m, $3m, $4m in years 1-3. After year 3, the cash flows will increase by 2% per year forever. What is the NPV of the project if the discount rate is 14%?

  • $12.8 million
  • $22.7 million
  • $11.0 million
  • $18.4 million
  • $17.5 million

Reference no: EM131975519

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