Firm D is evaluating a proposed capital project. The project has an expected life of 8 years and an NPV of $3,600.

Firm D is evaluating a proposed capital project. The project has an expected life of 8 years and an NPV of $3,600. If the cost of capital is 15%, what is the present value of the project stream assuming that it is replicated “forever” using the EAA (UAS) technique?

$5,669

$5,027

$6,258

$5,348