3. Inflation in project analysis It is often easy to overlook the impact of inflation on the net present value (NPV) of the project. Not incorporating the impact of inflation in determining the value of the cash flows of the project can result in erroneous estimations. Consider the following scenario: Rack and Moore Inc is considering opening a new division to make iTors that it expects to sell at a price of $12,450 each in the first year of the project. The company expects the cost of producing each iToy to be 57,225 in the first year; however, it expects the seling price and coet per ifoy to increase by 3% each year. Based on this information, choose the correct doliar amounts from the dropdown menus. Selling price in vear 4 : Cost per unit in year 4 : If a company does not take infiation into account when analyzing a project, the expected NPV of the project wil typically be than the tru NPN of the project. 3. Inflation in project analysis It is often easy to overlook the impact of inflation on the net present value (NPV) of the project. Not incorporating the impact of inflation in determining the value of the cash flows of the project can result in erroneous estimations. Consider the following scenario: Rack and Moore Inc is considering opening a new division to make iTors that it expects to sell at a price of $12,450 each in the first year of the project. The company expects the cost of producing each iToy to be 57,225 in the first year; however, it expects the seling price and coet per ifoy to increase by 3% each year. Based on this information, choose the correct doliar amounts from the dropdown menus. Selling price in vear 4 : Cost per unit in year 4 : If a company does not take infiation into account when analyzing a project, the expected NPV of the project wil typically be than the tru NPN of the project