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You can invest in a project other now or next year If it is successful, you get a porpetual cash flow of $30M that start
Posted: Sun May 08, 2022 10:49 am
by answerhappygod
- You Can Invest In A Project Other Now Or Next Year If It Is Successful You Get A Porpetual Cash Flow Of 30m That Start 1 (14.68 KiB) Viewed 32 times
You can invest in a project other now or next year If it is successful, you get a porpetual cash flow of $30M that starts the following yoar, and grows at rate of 2 percent if it is unsuccessful, you get a perpetual cash flow of $10M that starts the following year and grows at a rate of 2 percent The project costs S160M and has a discount rate of 12 percent Both states are equally likely What is the NPV of the project at t1 if you invest in the good state? S140 M O S100 M O SOM