Problem

Restate the net cash flows in Table 6.6 in real terms. Discount the restated cash flows at...

Restate the net cash flows in Table 6.6 in real terms. Discount the restated cash flows at a real discount rate. Assume a 20% nominal rate and 10% expected inflation. NPV should be unchanged at+3,802, or $3,802,000.

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Solutions For Problems in Chapter 6