growth rate

growth rate

An investment has an installed cost of $673,658. The cash flows over the four-year life of the investment are projected to be $228,701, $281,182, $219,209, and $190,376.

Requirement 1:
If the discount rate is zero, what is the NPV? (Do not round intermediate calculations.)

NPV $

(c)
The company is somewhat unsure about the assumption of a growth rate of 5.1 percent its cash flows. At what constant growth rate would the company just break even if it still required a return of 12 percent on its investment? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimalplaces (e.g., 32.16).)

Minimum growth rate [removed] %

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