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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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