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your firm expects to receive a cash flow of $5,000 in real terms each year in the next two years from an investment project. The

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your firm expects to receive a cash flow of $5,000 in real terms each year in the next two years from an investment project. The initial investment today is $6,800. If the real rate of interest is 4 percent and the inflation rate is 6 percent, what is the NPV of this project? $2630.47 $1877.69 $3200.00 $2116.32 Question 2 (5 points) your firm expects to receive a cash flow of $5,000 in real terms each year in the next two years from an investment project. The initial investment today is $6,800. If the real rate of interest is 4 percent and the inflation rate is 6 percent, what is the expected nominal cash flow in Year 2 ? $5,200 $5,408 $5,618 $5,300

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