flows for an investment with an economic life of 5 years are as follows: k0 = -10000, k1 = k2 = k3 = k4 = 3000, k5 = k1 + 1000 = 4000. This investment can be repeated in years 5, 10, ... etc. . What is the net present value of the infinite cash flow that follows if the discount rate

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...
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The cash flows for an investment with an economic life of 5 years are as follows: k0 = -10000, k1 = k2 = k3 = k4 = 3000, k5 = k1 + 1000 = 4000. This investment can be repeated in years 5, 10, ... etc. . What is the net present value of the infinite cash flow that follows if the discount rate is 12% per annum.

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