Homework help with this
Growth Enterprises believes its latest project, which will cost $90,000 to install, will generate a perpetual growing stream of cash flows. Cash flow at the end of the first year will be $9,000, and cash flows in future years are expected to grow indefinitely at an annual rate of 4%.
| a. |
If the discount rate for this project is 12%, what is the project NPV? (Do not round intermediate calculations.) |
| b. |
What is the project IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
