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After year 3 the cash flows will increase by 2 per year

A project costs $12.2 million today to get started and will produce after-tax cash flows of $2m, $3m, $4m in years 1-3. After year 3, the cash flows will increase by 2% per year forever. What is the NPV of the project if the discount rate is 14%?

$12.8 million
$22.7 million
$11.0 million
$18.4 million
$17.5 million

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Finance Basics: After year 3 the cash flows will increase by 2 per year

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Finance Basics: After year 3 the cash flows will increase by 2 per year

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