69. Real versus Nominal Dollars. Your consulting firm will produce cash flows of $100,000 this year, and you expect cash flow to keep pace with any increase in the general level of prices. The interest rate currently is 6%, and you anticipate inflation of about 2%.

a. What is the present value of your firm's cash flows for years 1 through 5? (LO6)

b. How would your answer to

(a) change if you anticipated no growth in cash flow? (LO2)