Question
In: Finance
You are trying to value the following project for your company. You know that the project...
You are trying to value the following project for your company. You know that the project will generate free cash flows in perpetuity that will grow at a constant annual rate of 2% after year 2. The applicable interest rate for this project is 11%. What is the NPV of this project? Express your result in $-millions (do not include the $-symbol in your answer). If you calculate a negative NPV enter a negative number.
| Year | |||
| 0 | 1 | 2 | |
| Free Cash Flows | -8 | 17 | 15 |
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You are trying to value the following project for your company.You know that the project...
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You know that the project will generate free cash flows in
perpetuity that will grow at a constant annual rate of 2% after
year 2. The applicable interest rate for this project is 10%. What
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You are trying to value ListoFact, a data processing company. The company generated $ 1 billion...
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