QUESTION 2 A project costs $12,800 and is expected to provide a real cash inflow of $10,000 at the end of each of years through 5. Calculate the net present value of this project if inflation is expected to be 4% in each year and the firm employs a nominal discount rate of 10.76% QUESTION 3 New projects can have multiple effects on a firm. Which one of the following appears to be a positive indirect effect? Additional working capital wil be required at the start of the project The sales force will need to be increased over the life of the project Sales of replacement parts are expected in the future The cost of employee benefits will increase due to new hires one of the above