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(S thousands) Period Net cash flow Present value at 18% Net present value = 12,800 1,504 2,967 6,343 10,554 10,005 5,777 3,289 2,800 1,275 2,131

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(S thousands) Period Net cash flow Present value at 18% Net present value = 12,800 1,504 2,967 6,343 10,554 10,005 5,777 3,289 2,800 1,275 2,131 3,861 5,444 4,373 2,1401,032 4,906 (sum of PVs) Restate the above net cash flows in real terms. Discount the restated cash flows at a real discount rate. Assume a 18% nominal rate and 12% expected inflation. NPV should be unchanged at +4,906, or S4 906,000 (Negative answers should be indicated by a minus sign. Do not round intemediate calculations. Enter your answers in thousands rounded to the nearest whole number.) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net cash flows (real) Net present value eBo&Resources

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