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Npv of project based on nominal prices and nominal rate

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An investment of $8,000 is expected to generate cash inflows of $1,500 per year for 8 years measured at today's price levels. The annual inflation rate over the next 8 years is expected to be 5 percent. If the real cost of capital net of inflation is 4 percent, what is the NPV of the project based on nominal prices and nominal rate?

Reference no: EM133002832

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