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IV. Suppose that the net benefits of a project, measured in constant dollars, are equal to -$3,000 in year 0, $1,250 in each of the next three years, and $0 thereafter. A. Calculate, to two decimal places, the NPV using a discount rate of 10%. Show the calculations. Year Net Benefits Present Value: i=10% 0 - 3,000 -3,000.00 1 1,250 1,136.36 2 1,250 1,033.06 3 1,250 939.14 108.56 B. The 10% discount rate in part A is equal to the real rate of interest. If the expected rate of inflation is 15%, what is the value of the nominal interest rate? C. The net benefits in part A are measured in constant dollars. What is the current dollar value of net benefit in year 2? D. Explain why discounting current dollar net benefits using the nominal rate of interest would give the same NPV as discounting constant dollar net benefits using the real rate of interest. contract that would pay