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The following table shows a cash flow schedule for an investment opportunity. Year CPI Annual nominal cash flow -$130,000 -$45,000 -$10,000 0 100 1 103.5

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The following table shows a cash flow schedule for an investment opportunity. Year CPI Annual nominal cash flow -$130,000 -$45,000 -$10,000 0 100 1 103.5 2 107.12 3 110.87 $220,000 Use the table in Q12 to answer the following question: What is the correct value for the real IRR? If the nominal discount rate is 5%, should the firm take this project? O A. Real IRR = 6.73%; Yes, the firm should take the project. OB. Real IRR = 6.73%; No, the firm shouldn't take the project. O C. Real IRR = 3.12%; No, the firm shouldn't take the project. OD. Real IRR = 3.12%; Yes, the firm should take the project. E. Real IRR = 2.31%; No, the firm shouldn't take the project. OF. Real IRR = 2.31%; Yes, the firm should take the project

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