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An investment project has the following cash flow: C: Cost, I: Income Consider escalation rate of 8% for the costs, escalation rate of 12% for
An investment project has the following cash flow: C: Cost, I: Income Consider escalation rate of 8% for the costs, escalation rate of 12% for incomes and inflation rate of 6% Calculate the ROR for escalated dollar and constant dollar cash flow of this investment project. Calculate NPV for escalated dollar and constant dollar cash flow considering 12% escalated dollar minimum rate of return. Please, explain your work in detail including all the required equations and calculations
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