Costs are 600 for the first year and will increase by 20


A project requires an investment of $900 today. It can generate sales of $1,100 per year forever. Costs are $600 for the first year and will increase by 20% per year. (Assume all sales and costs occur at year-end, i.e., costs are $600 @ t = 1.) Ignore taxes and calculate the NPV of the project at a 12% discount rate.

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Business Management: Costs are 600 for the first year and will increase by 20
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