Impact of Inflation on Net Present Value in Nonprofit Organizations: Refer to the data in exercise 15-27. Complete the following schedule to calculate the net present value if the real interest rate is 10 percent and inflation is expected to be 8 percent per year. Refer to Illustration 15-11 for present value tables under inflation. (Hint: Inflation affects both cash flows and the nominal rate of interest.)

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Time 2 Net annual cash flow Present value factor Present values Net present value 0 Year 7