Question: 7. a. Assume that inflation is expected to average 5 percent per year over the next 4 years. Does it appear that the project's cash

7. a. Assume that inflation is expected to average 5 percent per year over the next 4 years. Does it appear that the project's cash flow estimates are real or nominal? That is, are they stated in cons...

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=+d. Derive the IRR of each project.

=+c. Calculate the NPV of each project at 9%.

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