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Economics

You are evaluating a project that has the following cash flows: -100 today, then cash inflows of 20, 30, and 40 for the next three years, respectively, and thereafter cash flows grow at 5% per year forever. (E.g. the cash flow at time 4 is 5% greater than 40 or 42).

a. What is the NPV if the discount rate is 15%?

b. What is the IRR (show to at least one decimal place)?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9523059

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