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You can invest in a project either now or next year. If it is successful,...

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You can invest in a project either now or next year. If it is successful, you get a perpetual cash flow of $30M that starts the following year, and grows at rate of 2 percent. If it is unsuccessful, you get a perpetual cash flow of $10M that starts the following year and grows at a rate of 2 percent. The project costs $160M and has discount rate of 12 percent. Both states are equally likely. What is the NPV of the project at t+1 if you invest in the good state? $140 M $100 M $90 M QUESTION 31 You can invest in a project either now or next year. If it is successful, you get a perpetual cash flow of $30M that starts the following year, and grows at rate of 2 percent. If it is unsuccessful, you get a perpetual cash flow of $10M that starts the following year and grows at a rate of 2 percent. The project costs $160M and has a discount rate of 12 percent. Both states are equally likely. What is the NPV of the project at t+1 if you invest in the bad state? -$35.0M -$60.OM -$76.67M

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