What is the present value of the project

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1. A firm has an opportunity to invest in a project and earn 600,000 next year from it. The future years are expected to see cash flow growing at inflation, which is best predicted at 1.7%, in perpetuity. The project is expected to produce these cash flows in perpetuity. The internal rate of return for the project is 17%. What is the present value of the project?

2. D/E is 3.0                     

Total Assets are 4 million                      

Long-term debt is 2 million                   

Working capital is 200,000                   

FIND the Current Ratio.

3. Beta is 1.6.  

Risk free rate is 1.7%.

Equity risk premium is 6%                

Use CAPM and find the cost of equity.

Reference no: EM131920888

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