Question
Calculate the NPV for the project with the following real cash flows: Year: 0 1 2 Cash Flow in Real Terms -200 150 120 Assume
Calculate the NPV for the project with the following real cash flows:
Year:
0
1
2
Cash Flow in Real Terms
-200
150
120
Assume a real discount rate of 5% and a nominal discount rate of 10%.
a.
$45.21
b.
$70.00
c.
$35.54
d.
$51.70
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
