The following cash flows represent inflation adjusted (real) cash flows. If the nominal discount rate is...

The following cash flows represent inflation adjusted (real) cash flows. If the nominal discount rate is 20 percent and the inflation rate is 10 percent, which of the following is closest to the net present value of these cash flows?

Year 0 1 2 3 4

CF (1,000) 591 537 488 444

Group of answer choices

a. $362

b. $651

c. $682

d. $717

Expert Solution

jeff jeffy answered 2 years ago

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