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Net cash flow Present value at 21% Net present value. Real Net Cash Flows- NPV Year 0 ($ thousands) Period 0 1 -12,900 -1,514 -12,900

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Net cash flow Present value at 21% Net present value. Real Net Cash Flows- NPV Year 0 ($ thousands) Period 0 1 -12,900 -1,514 -12,900 -1,251 2,970 (sum of PVS) Year 1 2,977 2,033 6,353 10,564 3,586, 4,928 Restate the above net cash flows in real terms. Discount the restated cash flows at a real discount rate. Assume a 21% nominal rate and 9% expected inflation. (Negative 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 2 Year 3 10,015 3,861 Year 4 5,787 1,844. Year 5 7 3,299. 869 Year 6 Year 7

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