A project will cost $150,000 to initiate and will generate nominal cash flows of $80,000 in each of the next three years.The real discount rate has been estimated to be 10 percent per year.Expected inflation is 3 percent over the next three years.What is the NPV of the project?
A) $37,934.15
B) $42,303.08
C) $48,948.16
D) $76,288.91
Correct Answer:
Verified
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