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If an investment costing $2,000 is expected to generate real cash flows of $900 p.a. for three years and prices are expected to increase at

If an investment costing $2,000 is expected to generate real cash flows of $900 p.a. for three years and prices are expected to increase at a rate of 10% p.a., what is the real required rate of return if the nominal rate of return is 15%?

Select one:

a. 6%

b. 5%

c. 1.05%

d. 4.55%

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