UC Pizza Ltd. is currently looking at the project with the following cash flows in year...
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UC Pizza Ltd. is currently looking at the project with the following cash flows in year 0 (beginning of the project), year 1, and year 2. The cash flows are: -$20,000, $17,000, and $25,000. Note that the cash flows are expressed in real terms. The nominal discount rate is 10 percent and the expected inflation rate is 5 percent per annum. What is the net present value of this project? O a. $18,001 O b. $21,021 O c. $20,011 O d. $19,006 Cannot be computed UC Pizza Ltd. is currently looking at the project with the following cash flows in year 0 (beginning of the project), year 1, and year 2. The cash flows are: -$20,000, $17,000, and $25,000. Note that the cash flows are expressed in real terms. The nominal discount rate is 10 percent and the expected inflation rate is 5 percent per annum. What is the net present value of this project? O a. $18,001 O b. $21,021 O c. $20,011 O d. $19,006 Cannot be computed
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Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
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