Question
1 points Check my work Check My Work button is now enabledItem 20 Item 20 1 points Your consulting firm will produce cash flows of
1 points Check my work Check My Work button is now enabledItem 20 Item 20 1 points Your consulting firm will produce cash flows of $140,000 this year, and you expect cash flow thereafter to keep pace with any increase in the general level of prices. The interest rate currently is 6.8%, and you anticipate inflation of about 2.8%. a. What is the present value of your firms cash flows for years 1 through 6? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. How would your answer to (a) change if you anticipated no growth in cash flow? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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