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Corporation discounts a proposed 10 year project using an annual discount rate of 17%. The company expects the inflation rate over the next ten years

Corporation discounts a proposed 10 year project using an annual discount rate of 17%. The company expects the inflation rate over the next ten years to average 8% per year. What is real discount rate?

A. 7.7%

B. 8.3%

C. 7%

D. 6%

E. None of the above

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