A Project Generates the Following Sequence of Cash Flows Over

question 62

Multiple Choice

A project generates the following sequence of cash flows over two years: Assume that cash flows after the second year grow at 2% annually in perpetuity,and the discount rate is 12%.What is the NPV of the project?

• A) $56.4m
• B) $54.8m
• C) $47.7 m
• D) $50.4m

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