Question: 2. (4 points) A project costs $20,000 and is expected to have cash flows of 3,500 next year, and the cash ows are expected to

2. (4 points) A project costs $20,000 and is expected to have cash flows of 3,500 next year, and the cash ows are expected to increase at the rate of inflation. The real required rate of return is 10%. The inflation rate is expected to be 4%. The NPV of the project is

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