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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 expected nominal cash flow in Year 2? \begin{tabular}{|r|} \hline$5,408 \\ \hline$5,300 \\ \hline$5,618 \\ \hline$5,200 \end{tabular}

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