If the discount rate for this project is 10 percent,

If the discount rate for this project is 10 percent,

NPV/IRR. Growth Enterprises believes its latest project, which will cost $50,000 to install, will generate a perpetual growing stream of cash flows. Cash
flow at the end of this year will be $5,000, and cash flows in future years arc expected to grow indefinitely at an annual rate of 5 percent.

a. If the discount rate for this project is 10 percent, what is the project NPV?

b. What is the project IRR?

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