A firm forecasts projects net cash flows

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A firm forecasts a project's net cash flows ($millions) in years 1 thru 4 as $120, $130, $135, and $137, respectively. If the project ends at the end of the fourth year, what is the horizon value of the project? Assume that the company had a historical growth rate of 3% and has a discount rate of 10%.

$0.00

$1.37

$1.96

$4.87

Reference no: EM13868336

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