# Valuation question

My question is regarding valuation, raising capital, and the price you pay. Assume a project that requires a 5000 initial investment with cash flows that look like the following: Year 0: -5000 Year 1: 750 Year 2: 810 Year 3: 875 Year 4: 945 Year 5: 1,020 Year 6: 1,102 Year 7: 1,190 Year 8: 1,285 Year 9: 1,388 Year 10: 1,499 Year 11 and beyond = 0 cash flow; project terminates after year 10 cash flow. (I rounded the above numbers; the first cash flow is 750 flat with 8% growth every year if you want to get detailed.) The project is financed entirely with equity, and the cost of equity is 9%. NPV = 1,603.51 PV of cash flows = 6,603.51 irr = 15% The number of shares currently outstanding is 1,000. Thusly, the price of stock for this company/project is \$6.60 per share (pv of cash flows discounted at 9% divided by shares outstanding). Perhaps I am getting confused in my own logic here, but my question is the following: If you wanted to raise additional capital for this project or you wanted to sell your shares of stock in this project (prior to the first cash flow), how would you do so and at what price would you sell it? The value of the stock is easily and clearly calculated to be \$6.60 per share. But at \$6.60 a share the investor will receive no return on their investment. What value is there for an investor who purchases the stock at this price? The cash flows are known outright so there is no speculation. How would you calculate the cost of stock to sell to an outsider in this situation? Hopefully, I’ve just been up too late and am misunderstanding something really obvious and simple. If anyone can help explain this for me I will greatly appreciate it. It just seems like the cost of the shares that are priced as the cost of equity will exactly negate any potential gain the shareholder will receive by paying that price.