Question 4: You are evaluating a project that requires an initial investment of $350,000, and...
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Question 4: You are evaluating a project that requires an initial investment of $350,000, and that will provide a net cash inflow of $30,000during the first year. The net cash inflow is projected to grow at 8% p.a. constantly forever. Assuming the cost of capital is 15%:(a)Is this project acceptable?(b)If you are uncertain about the projected 8% growth rate, at what constant growth rate will the company just break even?
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