What is the net present value of the project


Problem

Consider a project that requires an initial investment of 300 million (Euro). This project will generate a net cash flow of 30 million in the first year. Its net cash flows will grow at a constant rate of 10% per year, thereafter, forever. What is the Net Present Value (NPV) of this project (in Euro) when the cost of capital (WACC) is 20%?

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Finance Basics: What is the net present value of the project
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