Question: Bignames LLC is evaluating Project T, which requires an initial investment of RO 21000. The expected net cash flows are RO 5500 pa for four

 Bignames LLC is evaluating Project T, which requires an initial investment

Bignames LLC is evaluating Project T, which requires an initial investment of RO 21000. The expected net cash flows are RO 5500 pa for four years at today's prices. However, these are expected to rise by 5.5% pa because of inflation. The firm's cost of capital is 15%. What is the NPV for Project T evaluated by Bignames LLC using the discounting money cash flows? 0 4803 -3183 -3393 2525

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