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When calculating the net present value of an investment project, the firm of Henry & Norman expects profit in the first year to be $60,000,
When calculating the net present value of an investment project, the firm of Henry & Norman expects profit in the first year to be $60,000, and they expect real profits to remain at that level over the next five years. Since they are using a nominal discount rate of 13 percent in their net present value calculation, they want to convert future real profits to nominal profits. They expect inflation to be 2 percent per year over the next five years. The nominal profit for year 2 of the investment project is $() (Enter your response rounded to two decimal places.) If the investment project has an initial cost of $260,000, the net present value in nominal dollars is $. (Enter your response rounded to two decimal places.) Henry & Norman undertake the investment project. should not should
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