ABC Inc.forecasts the following nominal cash flows for a project: Time CF 0 -25,000 1 10,000 2
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Question:
ABC Inc. forecasts the following nominal cash flows for a project:
Time | CF |
0 | -25,000 |
1 | 10,000 |
2 | 10,000 |
3 | 10,000 |
4 | 10,000 |
The real rate is 3%, and the inflation rate is 5%. Calculate the NPV for the project.
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
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