A project requires a current investment of $308.47 and yields future expected cash flows of $97.39, $144.97,
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A project requires a current investment of $308.47 and yields future expected cash flows of $97.39, $144.97, $163.28, $184.99, and $96.41 in periods 1 through 5, respectively. All figures are in thousands of dollars. The forecasted inflation rate is 4.4% in period 1, 4.6% in period 2, 4.9% in period 3, 5.4% in period 4, and 5.7% in period 5. For these expected cash flows, the appropriate REAL discount rate is 8.8% in period 1, 8.1% in period 2, 7.5% in period 3, 7.0% in period 4, and 6.4% in period 5. What is the net present value of this project?
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