WhiteScreen LLC is evaluating Project T, which requires an initial investment of RO 18000. The expected net cash flows are RO 5000 pa for four years at today’s prices. However, these are expected to...

WhiteScreen LLC is evaluating Project T, which requires an initial investment of RO 18000.

The expected net cash flows are RO 5000 pa for four years at today’s prices.

However, these are expected to rise by 5.5% pa because of inflation.

The firm’s cost of capital is 15%.