Al shorouk company is planning to undertake a project requiring initial investment of $70,000. The project is expected to generate $20,000 per year in net cash flows for 4 years and desired nominal rate-of-return is 10% and inflation rate is 5%..

Calculate net present value of the project using real rate-of-return

a.

$-1,316

b.

$ -6,602

c.

$1,316

d.

$ 6,602