NPV and IRR of a Perpetuity

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An investment that costs $10 million is expected to generate a cash flow of $2 million per year in perpetuity. What is the NPV if the discount rate is 8%? What is the IRR if the hurdle rate is 8%?

NPV = PV(inflows) - cost
15m = (2m / .08) - 10
positive NPV, Accept Project

2 / 10 = 20% = IRR
20% greater than 8%, Accept Project

NPV, IRR, and PV of a Perpetuity:
https://youtu.be/gm9vOFFHwy4

how to find net present value of perpetuity
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