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Given the Following Data for Project M A) $2585
B) $17

Question 11

Multiple Choice

Given the following data for Project M:
Cash flow in nominal terms:Real discount rate =5%Nominal discount rate =10%Calculate the NPV of the projectC0C1C21007560\begin{array}{c}\begin{array}{lll}\\ \text {Cash flow in nominal terms:}\\\text {Real discount rate \( =\mathbf{5} \% \) }\\\text {Nominal discount rate \( =10 \% \) }\\\text {Calculate the NPV of the project}\end{array}\begin{array}{lll}C_{0} & C_{1} & C_{2} \\-100 & 75 & 60\\\\\\\\\end{array}\end{array}


A) $25.85
B) $17.77
C) $22.65
D) None of the above

Correct Answer:

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