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A firm predicts a cashflow of 5,000 in real terms each year over the next 2 years. The investment today is 6,800. The real rate
A firm predicts a cashflow of 5,000 in real terms each year over the next 2 years. The investment today is 6,800. The real rate of interest is 4% and the inflation rate is 6% what is thr expected nominal cashfloe in year two.
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