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What is the present value of project

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You are evaluating a project that is expected to return $100,000, $250,000, and $200,000 in years 1, 2, and 3, respectively. In the fourth year the project will return $125,000 per year at the end of each year in perpetuity. Please use the no growth perpetuity formula at the end of Chapter 3 to value this perpetual no growth perpetuity and combine this value with the other cash flows. Assume that your cost of money is 7%. What is the present value of this project?

Reference no: EM133002867

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