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Growth Enterprises believes its latest project, which will cost $90,000 to install, will generate a perpetual growing stream of cash flows. Cash flow at the end of the first year will be $9,000, and cash flows in future years are expected to grow indefinitely at an annual rate of 4%.

 

a.

If the discount rate for this project is 12%, what is the project NPV? (Do not round intermediate calculations.)

 

  NPV$ [removed]  

 

b.

What is the project IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

 

  IRR[removed] %  
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