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Question 2 of 9 The Real company (CC) sells fishing equipment in a retail setting. The Real company is considering a new project and
Question 2 of 9 The Real company (CC) sells fishing equipment in a retail setting. The Real company is considering a new project and have estimated the cash flows for the project in today's terms, or in real terms. The project has no depreciation to consider and the environment within the company operates experiences annual inflation of 25% per annum. The project has expected net cash flows as follows: Y1 Y2 Y3 R10 000 R15 000 R5 000 Year 1 Year 2 R10 000 R15 000 Year 3 R5 000 What would the inflation adjusted NPV of the project be if the company has a discount rate of 30%? A. R27 929 B. R10 000 C. R25 679 D. R14 529
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