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4. A company of $20,000 is to be received 10 years hence, followed by a $40,000 payment 17 years from the present. If over this

4. A company of $20,000 is to be received 10 years hence, followed by a $40,000 payment 17 years from the present. If over this time span the annual inflation rate is 5% while the expected annual market rate is 9%, calculate the present equivalent these two payment using

a. Actual dollar analysis

b. Constant dollar analysis

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