Question
If the real interest rate is 4% and the rate of inflation is 3%, what is the nominal interest rate? Consider the following annual cash
- If the real interest rate is 4% and the rate of inflation is 3%, what is the nominal interest rate?
- Consider the following annual cash flows of a project.
| Year | Cash flows (in thousands of dollars) |
| 0 | $3,000 |
| 1 | $1,300 |
| 2 | $1,500 |
| 3 | $2,000 |
Using a cost of capital of 10%, compute the projects net present value (NPV).
** I WANT ALL STEPS AND CALCULATIONS SHOWN USING THE FORMULA ****
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Money Talks Black Finance Experts Talk To You About Money
Authors: Fairley, Juliette
1st Edition
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