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($ thousands) Period 0 1 2 3 4 5 6 7 Net cash flow –14,000 –1,624...


($ thousands)
Period
0 1 2 3 4 5 6 7
Net cash flow –14,000 –1,624 3,087 6,463 10,674 10,125 5,897 3,409
Present value at 22% –14,000 –1,331 2,074 3,559 4,818 3,746 1,788 847
Net present value = 1,502 (sum of PVs)
Restate the above net cash flows in real terms. Discount the restated cash flows at a real discount rate. Assume a 22% nominal rate and 8% expected inflation. NPV should be unchanged at +1,502, or $1,502,000. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number.)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net cash flows (real)
Net present value $

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Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

Please note :

jeff jeffy answered 20 hours ago
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