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Net cash flow Present value at 19% Net present value (5 thousands) Period 2 - 13,700 -1,594 3,057 -13,700 -1,339 2,159 3,541 (sun of PVs)

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Net cash flow Present value at 19% Net present value (5 thousands) Period 2 - 13,700 -1,594 3,057 -13,700 -1,339 2,159 3,541 (sun of PVs) 6,433 3,817 10,644 5,388 10,895 4,230 5,867 2,066 7 3,379 1,000 Restate the above net cash flows in real terms, Discount the restated cash flows at a real discount rate Assume a 19% nominal rate and 11% expected inflation NPV should be unchanged at -3,541, or $3,541,000 (Negotive answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number.) Year o Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Real Net Cash Flows NPV

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