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5. Your supervisor provided estimated cash flows for a project in constant dollars in the table below. The project lasts 4 years. You know that
5. Your supervisor provided estimated cash flows for a project in constant dollars in the table below. The project lasts 4 years. You know that the inflation-free interest rate is 3.0% and the general inflation rate is 7.0% Your supervisor requires that you provide all economic evaluations calculated using actual dollars for all cash flows. What is the present worth of this project's cash flows using actual dollar analysis? Assume annual compounding for the interest rate used for the present worth calculation. End of Year n Net Cash Flow 1 $30,000 2. $32,000 3 $34,000 4 $36,000 O The present worth using actual dollar analysis is $111,205.78. O The present worth using actual dollar analysis is $145,742.24. o The present worth using actual dollar analysis is $122,389.63
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