Question: Doctorow Ltd is evaluating a new project with an initial outlay of $2.5 million today. This investment will generate a constant nominal cash flow of $375,000 per year for the next 10 years starting one year from today. If the required real rate of return is 8% and inflation is forecasted to be 3% over the entire 10 year investment, what is the NPV of this project?
A. 16,280.52
B. 291,538.00
C. 698,826.06
D. 313,588.04
E. 698,826.06