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4- The cost of a machine after 5 years is estimated to be F=50,000 dollars (then-current dollars) due to inflation. If inflation rate is f=5%
4- The cost of a machine after 5 years is estimated to be F=50,000 dollars (then-current dollars) due to inflation. If inflation rate is f=5% and the real interest rate is i=10%, how much should be invested now (P) at the market interest rate (inflated rate) to buy the machine at that time? (i.e., what is the PW under inflation?). a) O 102,773 b) 24,325 () 31,046 d) 45,455 e) 55,000
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