A project anticipates net cash flows of $10,000 at the end of year one, with such amount
Fantastic news! We've Found the answer you've been seeking!
Question:
A project anticipates net cash flows of $10,000 at the end of year one, with such amount growing at the expected 5 percent rate of inflation over the subsequent four years. Calculate the real present value of this five-year cash stream if the firm employs a nominal discount rate of 15 percent.
A. $33,522
B. $38,377
C. $43,294
D. $55,000
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date: