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(S thousands) Period 2 6 5,817 Net cash flow Present value at 19% Net present value -13,200-1,544 13,200 -1,297 2,123 3,788 5,283 4,209 2,048 3,007

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(S thousands) Period 2 6 5,817 Net cash flow Present value at 19% Net present value -13,200-1,544 13,200 -1,297 2,123 3,788 5,283 4,209 2,048 3,007 6,383 10,594 10 10,045 3,329 985 3,940 (sum of PVs) Restate the above net cash flows in real terms. Discount the restated cash flows at a real discount rate. Assume a 19% nominal rate and 11% expected inflation. NPV should be unchanged at +3,940, or $3,940,000. (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 0 Year Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net cash flows (real) Net present value

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