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What is npv assuming general inflation rate of eight percent

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    Assignment ID: FG132983796

    A firm is considering a project with a cash flow outlay of 1,000$ now and 5 annual inflows of 500$

    Problem a) What is the NPV (net present value) at 10%. What is the NPV at other discount rates?

    Problem b) What is the NPV assuming a general inflation rate of 8% and an increase in cash flow to $510 per year?

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