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Remaining Time: 2 hours, 59 minutes, 48 seconds Question Completion Status: Question 1 of 6 > >> Moving to another question will save this response. 16 points Save Answer Question 1 Amazon is considering an investment project that requires an initial investment of $20 (could be million or billion, but for simplicity, please ignore the unit). The investment will generate a cash flow of $10 at the end of each year for 3 years if there is no inflation. A financial analyst determines that the project will have a nominal discount rate of 17 35%. The analyst also forecasts an inflation rate of 7% a)What is the real rate? (Sample Answer 5.55%) b)What is the net present value of the investment project? (Sample Answer $12.65)
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