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.

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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