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A project anticipates net cash flows of $10,000 at the end of year one, with such amount growing at the expected 5 percent rate of

A project anticipates net cash flows of $10,000 at the end of year one, with such amount growing at the expected 5 percent rate of inflation over the subsequent four years. Calculate the real present value of this five-year cash stream if the firm employs a nominal discount rate of 15 percent.

A. 38,377

B. 33,522

C. 43,294

D. 55,000

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