Question: 9. (4 points) Given the following data for Project M calculate the NPV of the project. C1 -10075 C2 60 Cash flow in nominal terms:

 9. (4 points) Given the following data for Project M calculate

9. (4 points) Given the following data for Project M calculate the NPV of the project. C1 -10075 C2 60 Cash flow in nominal terms: Real discount rate = 5% Inflation rate - 4% Required: (a) Calculate the discount rate assuming there is no risk. (b) Calculate the NPV of this project applying the discount rate you calculated in (a) above

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