A Project Costs $12,800 and Is Expected to Provide a Real

Multiple Choice

A project costs $12,800 and is expected to provide a real cash inflow of $10,000 at the end of each of years 1 through 5.Calculate the net present value of this project if inflation is expected to be 4% in each year and the firm employs a nominal discount rate of 10.76%.

A) $33,522.30
B) $28,756.79
C) $33,294.07
D) $26,311.15