Given the following data for Project M calculate the NPV of the project. C0 C1 C2 Cash
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Question:
Given the following data for Project M calculate the NPV of the project.
C0 | C1 | C2 | |
Cash flow in nominal terms: | −100 | 75 | 60 |
Real discount rate = 5% | |||
Inflation rate = 4% |
- Calculate the discount rate assuming there is no risk.
- Calculate the NPV of this project applying the discount rate calculated in above question.
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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