A project has the following expected net cash flows associated with it:

The cash flows are expressed in real terms. Adjust the cash flows to nominal terms assuming constant inflation of 5% and calculate the NPV of the project. The company in question has a WACC of 10%.

a. R35 577 b. R37 777 c. R50 000 d. R150 000

\begin{tabular}{|l|l|l|l|l|l|} \hline Year 0 & Year 1 & Year 2 & Year 3 & Year 4 & Year 5 \\ \hline -R 800 000 & R150 000 & R200 000 & R400 000 & R100 000 & R100 000 \\ \hline \end{tabular}