Question: Hi, Please help me to solve this homework in sample way. Exercise 1.(40 points) SWF is considering a project that is expected to generate real

Hi, Please help me to solve this homework in sample way.

Hi, Please help me to solve this homework in sample way. Exercise

Exercise 1.(40 points) SWF is considering a project that is expected to generate real cash flows of $10 million at the end of each year for 5 years. The initial outlay/investment required is $25 million. A nominal discount rate of 9.2% is appropriate for the risk level. Inflation is 5%. a) You are company's financial analyst. The CFO has asked you to calculate the NPV using a schedule of future nominal cash flows. b) Justify that NPV will remain the same while rearranging for inflation, and real cash flows calculations

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