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A project costs $12,800 and is expected to provide a real cash inflow of $10,000 at the end of each of years 1 through 5.

A project costs $12,800 and is expected to provide a real cash inflow of $10,000 at the end of each of years 1 through 5. Calculate the net present value of this project if inflation is expected to be 4% in each year and the firm employs a nominal discount rate of 10%.

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