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Find the npv of project

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Question: Doctorow Ltd is evaluating a new project with an initial outlay of $2.5 million today. This investment will generate a constant nominal cash flow of $375,000 per year for the next 10 years starting one year from today. If the required real rate of return is 8% and inflation is forecasted to be 3% over the entire 10 year investment, what is the NPV of this project?

A. 16,280.52

B. 291,538.00

C. 698,826.06

D. 313,588.04

E. 698,826.06

Reference no: EM131528608

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