Recall that NPV can be interpreted as the change in the value of the firm at the time the project is initiated (t-0). Assume future net benefits increase annually by 5%, the average expected inflation rate over the life of the project, and the nominal MARR is 10%. What is the lesson here? 3. a. Project nominal cash flows and calculate NPV using the nominal MARR. Year Cash Flow ($10,000) 2 0 $4,200 NPV = $ b. Project real cash flows and calculate NPV using the real MARR Year Cash Flow ($10,000)S4,000 0 123 Real MARR = NPV = $ c. What is the lesson (project evaluation best practice)