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Vivant Solar is considering another project. The project has initial investment cost of $18 million and will return $7.75 million a year in real terms
Vivant Solar is considering another project. The project has initial investment cost of $18 million and will return $7.75 million a year in real terms over the next 3 years. Because of changing economic conditions, you expect inflation to be 5% for all years after the first payment in T1. The nominal project discount rate applicable for all periods is 9%. Draw a time line of project cash flows and calculate the nominal NPV of the project.
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