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 percent per year.Expected inflation is 4 percent over the next two years.What is the NPV of the project?
A) $19,421.49
B) $21,573.55
C) $23,573.55
D) $25,496.63
Correct Answer:
Verified
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