Question
1)a)An investment pays $15 000 in five years. If inflation is 5 percent per year, what is the real value of the $15 000 in
1)a)An investment pays $15 000 in five years.
If inflation is 5 percent per year, what is the real value of the $15 000 in today'sdollars?
b)If inflation is 5 percent and the real MARR is 12 percent, what is the present worth?
c)What current dollar MARR (%) is equivalent to a 12 percent real MARR when inflation is5 percent?
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
6th edition
73523143, 73523149, 978-0073523149
