Arct has an upfront cost of $10.000. and it promo FF $3,000/year from through t-7seven years. As you can calculate thenet present Value of this projed, as a stand store project, without considering inflation, and using a discount rate of 110 percent, is $4.136.59 The firm intends to replicate this project out to infinity every seven years, and expects annual inflation to be 4.0 percent for the cash outflows, and 3.0 percent for the cash inflows. That is, the expected cost in Year 7 of replicating this project will be ($10,000)*(1.01) - $13,159.32, and the expected cash inflow in Year 1 will be ($3,000)*(1.03) - $3,090, in Year 2 will be ($3,000)*(1.03) - $3,182.70, etc Given this information, and assuming the discount rate remains the same, determine the net present value of this project if it is infinitely replicated and inflation is taken into consideration . $9,626 . $13,347 $15,804 $8,206 $11,315