Nominal versus real cash flows: You are buying a sofa. You will pay $200 today and make
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Nominal versus real cash flows: You are buying a sofa. You will pay $200 today and make three consecutive annual payments of $300 in the future. The real rate of return is 10 percent, and the expected inflation rate is 4 percent. What is the actual price of the sofa?
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Fundamentals Of Corporate Finance
ISBN: 9781119795438
5th Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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