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An investment of $8,000 is made at time 0 with returns of $3,500 at the end of each of years 1-4, with all monetary amounts
An investment of $8,000 is made at time 0 with returns of $3,500 at the end of each of years 1-4, with all monetary amounts being in real dollars. Inflation is running 7% per year over that time. Also, the real rate of return is 15% per year. Determine the present worth of the investment using both real dollars and then-current dollars.
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