Question
Numbers with * next to them are my answers. I'm not sure if it's right or not. Please help me, if I'm wrong please explain
Numbers with * next to them are my answers. I'm not sure if it's right or not. Please help me, if I'm wrong please explain the formula. Also could you show me how to calculate the NPV, explain if possible. Thanks in advance.
Fill in the missing items in the following table. Assume that the real interest rate is 3% per year, and inflation is expected to be constant at 2% per year.
Year Nominal Cash Flow Real Cash Flow
0 -10,000 -100,000
1 +12,000 *10,661.8446 * note: I filled this in
2 +22,000 *20,737.11
3 +15,000 *13,727.1249
4 +10,000 *8,884.8705
NPV ? ?
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