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Estimate the npv and irr of the project

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Reference no: EM131683127

Question: You are analyzing an investment decision, in which you will have to make an initial investment of $10 million and you will be generating annual cash flows to the firm of $2 million every year, growing at 5% a year, forever.

a. Estimate the NPV of this project, if the cost of capital is 10%.

b. Estimate the IRR of this project.

Reference no: EM131683127

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