Youâ€™ve been asked to evaluate a project. Your estimates say that the first cashflow of $120k...

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Finance

Youâ€™ve been asked to evaluate a project. Your estimates say thatthe first cashflow of $120k will occur one year from today. Youbelieve the cashflows will increase by 4% per year for 4 additionalyears. After that point, the cashflows will remain the same for 5years. The upfront cost to take the project is $950k, and theappropriate discount rate is 6%. What is the projectâ€™s NPV? PLEASEPOST THE ANSWER IN THE EQUATION FORMAT - NO NEED TO SOLVE FORACTUAL NUMBER.

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Strating year cash flow 120000 Increase rate for 4 years 4 So equation for actual cash flow Previous cash flow1growth rate for year 2 12000014 and so on NPV equation PV of See Answer

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