=c. How do your answers to questions (a) and (b) change when you assume a uniform inflation
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=c. How do your answers to questions
(a) and
(b) change when you assume a uniform inflation rate of 8 percent a year over the next 10 years? (Use the following equation to calculate the nominal discount rate: in = (1 + ir
)(1 + p) − 1, where in is the nominal discount rate, ir is the real discount rate, and p is expected inflation.)
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