Expected to grow indefinitely at an annual rate

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Reference no: EM131011471

Growth Enterprises believes its latest project, which will cost $80,000 to install, will generate streams of cash flows. Cash flow at the end of the first year will be $5,000, and cash flows in future years are expected to grow indefinitely at an annual rate of 5%.

If the discount rate for this project is 10%, what is the project NPV?

What is the IRR?

Reference no: EM131011471

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