Perpetuities and the cost of capital

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A project has an initial investment of 100. You have come up with the following estimates of the project's cash flows:

Suppose the cash flows are perpetuities and the cost of capital is 10%. What does a sensitivity analysis of NPV (no taxes) show? (Answers appear in order: [Pessimistic, Most Likely, Optimistic].)

Reference no: EM131607460

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