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Assume the market adjusted interest rate is 9% per year and inflation averages 5% per year. (1) What is the perpetual equivalent annual worth in
Assume the market adjusted interest rate is 9% per year and inflation averages 5% per year. (1) What is the perpetual equivalent annual worth in future dollars for years 1 through infinity for bonus wage of $65,000 now and $12,000 per year thereafter? All amounts are quoted as future dollars O $15,250 $10,280 $10,100 $17,850 QUESTION 10 (2) If the amounts had been quoted in constant value (CV) dollars, what is the real interest rate? 4.21% O 13.33% O 4.00% 3.81% QUESTION 11 (3) If the amounts had been quoted in CV dollars, what is the PW using the real interest rate calculated in the previous question? $380,000 O $365,000 O $155,000 O $350,000 Assume the market adjusted interest rate is 9% per year and inflation averages 5% per year. (1) What is the perpetual equivalent annual worth in future dollars for years 1 through infinity for bonus wage of $65,000 now and $12,000 per year thereafter? All amounts are quoted as future dollars O $15,250 $10,280 $10,100 $17,850 QUESTION 10 (2) If the amounts had been quoted in constant value (CV) dollars, what is the real interest rate? 4.21% O 13.33% O 4.00% 3.81% QUESTION 11 (3) If the amounts had been quoted in CV dollars, what is the PW using the real interest rate calculated in the previous question? $380,000 O $365,000 O $155,000 O $350,000
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