Growth Enterprises believes its latest project, which will cost $95,000 to install, will generate a perpetual growing stream of
cash flows. Cash flow at the end of the first year will be $8,000, and cash flows in future years are expected to grow indefinitely at an annual rate of 5%. (a) If the discount rate for this project is 10%, what is the project NPV? (Do not round intermediate calculations.)
(b) What is the project IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Based on the scenario, i think the sale will definitely occur in Primary markets In capital market term, primary market refer to various deals that included in issuing new securities (most commonly happen when the company try to raise funds from the capital market)
Given the information from the question. We need to calculate the contribution can she deduct Since Lois paid $1200 to customary IRA and she received a $240 savers credit. Thus, she will get derivation commitment less savers credit .as a result to get contribution can she deduct is $1200-$240= $960. Therefore, the correct answer is $960.
