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.)

a. $65,000

b. 13.40

Explanation:

a. Present value of cash flow = Cash flow ÷ (Discount rate - Growth rate)

= $8,000 ÷ (0.10 - 0.05)

= $8,000 ÷ 0.05

= $160,000

So, Net present value = present value of cash inflow - cash outflow

= $160,000 - $95,000

= $65,000

b. Value of investment = cash flows ÷ (internal rate of return - growth rate)

= $95,000 = $8,000 ((internal rate of return - 5%)

= Internal rate of return - 0.05 = $8,000 ÷  $95,000

= 0.084 + 0.05

= 13.40

answer: b) the us is the leading importer but not the leading exporter.

extra info:

the u.s is the largest importer but it is not the largest exporter as china sits on the top of the table when it comes to leading exporters.

but u.s is not far from first,

they rank in 2nd globally as the worlds largest exporter.

happy to

pls mark as brainliest

hi.

i'm not sure about the answer, but, i would say c. *when the recipient was not included on the original email.*

hope this , well if it's right. uwu

merry christmas! ^-^