Multiple Choice
If an investment costing $2000 is expected to generate real cash flows of $900 p.a.for three years,prices are expected to increase at a rate of 10% p.a. ,and the nominal cost of capital is 15%,what is the net present value of the investment?
A) $520.59
B) $740.79
C) $471.97
D) $389.79
Correct Answer:
Verified
Correct Answer:
Verified
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