In 1975 interest rates were 7.85% and the rate of inflation was 12.3% in the Un

In 1975 interest rates were 7.85% and the rate of inflation was 12.3% in the United States. What was the real interest rate in 1975? How would the purchasing power of your savings have changed over the year? Q16 Consider a project that requires an initial investment of $100000 and will produce a single cash flow of $150000 in five years. a. What is the NPV of this project if the five-year interest rate is 5% (EAR)? b. What is the NPV of this project if the five-year interest rate is 10% (EAR)? c. What is the highest five-year interest rate such that this project is still profitable?