Determine the npv using nominal values

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Reference no: EM131884820

A company wishes to evaluate a 10-year project with the following cash flow profile


Amount
Initial capital outlay $50,000
Annual cash flow (real) $30,000

If the (nominal) discount rate for the company is 15% and the inflation rate is 8%, determine the following:

a) The NPV using nominal values

b) The NPV using real values

Reference no: EM131884820

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