Nominal required rate of return 14%
Real required rate of return 8%
Present value of nominal cash flows discounted at 14%: Rs. 16.75 billion
Present value of real cash flows discounted at 14%: Rs. 12.25 billion
Present value of nominal cash flows discounted at 8%: Rs. 23.78 billion
The present value of the real cash flows discounted at 8% is closest to:
A. Rs. 14.06 billion.
B. Rs. 16.75 billion.
C. Rs. 23.78 billion