Question
Anna has a business opportunity that costs $50,000 at time 0. It returns $30,000 and time 1 and $40,000 at time 2. All these figures
Anna has a business opportunity that costs $50,000 at time 0. It returns $30,000 and time 1 and $40,000 at time 2. All these figures are in nominal terms. Anna's nominal discount rate is 8%, and the inflation rate is 4%. What is the nominal NPV of the business opportunity at time 0? Choose the nearest answer.
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Case Studies In Finance
Authors: Robert F. Bruner
4th Edition
0072338628, 978-0072338621
