What is the rate of return of the investment, Finance Basics

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What is the rate of return of the investment

Problem

An investment requires 19,000 today, and produces the first cash flow of 670 in two years (year 2). Cash flow is expected to grow at 2.5% a year after year 2 until eternity.

i. What is the NPV of this investment if the discount rate is 7%?
ii. What is the rate of return of this investment?

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