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Economic.. IX. The net benefits of a project, measured in constant dollars, are -$450.00 in year 0, $200.00 in each of the next three years,

Economic..

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IX. The net benefits of a project, measured in constant dollars, are -$450.00 in year 0, $200.00 in each of the next three years, and $0 thereafter. A. Calculate, to two decimal places, the NPV assuming i = 10%. Show your calculations B. Explain why using a lower discount rate would have resulted in a higher NPV. C. The 10% discount rate in part A is equal to the real rate of interest. If the expected rate of inflation is 20%, what is the value of the nominal interest rate? D. The net benefits in part A are measured in constant dollars. If the rate of inflation is 20%, what is the current dollar value of net benefit in year 3

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