Create perpetual growing stream-compute projected npv

Reference no: EM13107233

Growth Enterprise thinks its latest project, that will cost $80,000 to install, will create the perpetual growing stream of cash flows. Cash flows at the end of this year will be $5,000 and cash flows in future years are expected to grow indefinitely at annual rate of 5%.

A. If discount rate for this project is 10%, compute projected NPV?
B. Determine the project IRR?

Reference no: EM13107233

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