ADC Corp
Subject:FinancePrice: Bought3
ADC Corp. is assessing a project which would require an initial investment of $200 million. The project is expected to generate $150 million in the first year, and $120 in the second year. If the inflation rate is 5% per annum and the nominal discount rate is 10% per annum, what is the NPV of the project using the real discount rate?
Select one:
a.
$45.21 million.
b.
$35.54 million.
c.
$52.53 million.
d.
$70.00 million.
