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The expected average rate of inflation over the period is 6.83%. The firm's nominal cost of capital is 14%. Below are the expected project cash
The expected average rate of inflation over the period is 6.83%. The firm's nominal cost of capital is 14%. Below are the expected project cash flows. Year 0 1 2 3 4 Cash Flow -20 000 000 8 000 000 8 000 000 10 000 000 10 000 000 WN . Calculate the company's real rate of return Using the Net Present Value (NPV) method, determine if the new project will yield any benefits to the company's shareholders. Take into consideration the projected inflation figures
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