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[3] The following cash flows are in actual dollars: Cash flow Cash flow in Year in actual dollars constant dollars 0 $1,500 ? 4 2,500

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[3] The following cash flows are in actual dollars: Cash flow Cash flow in Year in actual dollars constant dollars 0 $1,500 ? 4 2,500 ? 5 3,500 ? 7 4,500 ? Please convert to an equivalent cash flow in constant dollars. Assume that the market interest rate is 8% and the general inflation rate (F) is 6% per year. (15%)

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