A project will cost $50,000 to initiate and will generate real cash flows of $40,000 in each of the next two years.The nominal discount rate has been estimated to be 10% per year.Expected inflation is 4% over the next two years.What is the NPV of the project?

Question

Quizplus · Accepted Answer

The Answer of A project will cost $50,000 to initiate and will generate real cash flows of $40,000 in each of the next two years.The nominal discount rate has been estimated to be 10% per year.Expected inflation is 4% over the next two years.What is the NPV of the project?

A Project Will Cost $50,000 to Initiate and Will Generate