AA corporation has a new project with projected real cash flows of $12,200, $14,600, and $16,300 for Years 1 to 3, respectively. The nominal discount rate is 15.96 percent and the inflation rate is 4 percent. What is the net present value if the initial investment cost is $25,000?

Answer rating: 100% (QA)

To calculate the net present value NPV of the project we need to discount the projected real cash fl... View the full answer