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Can someone please explain why 63 is answer is a) , 64 is a) , 65 is b) and 66 is is a) ? l
Can someone please explain why 63 is answer is a) , 64 is a) , 65 is b) and 66 is is a) ?
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What is the dollar value of AA? a) 50,000; b) 50,000(P/F,inflation rate, 1) c) 50,000 (F/P,inflation rate,1); c) 50,000(P/F,real MARR,1); d) 50,000 (F/P,actual MARR,1) 63. What is the dollar value of BB (to the nearest $100)? a) 19,400; b) 20,000; c) 21,200 64. 65. What is the dollar value of CC? a) 20,000 (P/F,inflation rate, 1); b) 20,000 (F/P,inflation rate,3) c) 20,000(P/F,real MARR,1); d) 20,000 What is the dollar value of DD? a) 19,400; b) 20,000; c) 22,500 66. Questions 61 to 66 Your municipality is planning the construction of a new sports complex on January 1, 2018 (Yes construction is almost instantaneous!!) You've requested by the municipal council to explain the relationship between the project actual and constant dollar flows for the project. The projected annual inflation rate is 3% The nominal (with inflation) interest rate is 5%. Actual cash flows are fully sensitive to inflation (i.e., they increase at the same rate as inflation) * Projected Cash Flows Cash Flows in January 1, 2018 dollars Cash Flows in Actual Dollars Initial Investment on January 1, 2018 50,000 EOY: 2018 2019 2020 2021 2022 20,000 What is the dollar value of AA? a) 50,000; b) 50,000(P/F,inflation rate, 1) c) 50,000 (F/P,inflation rate,1); c) 50,000(P/F,real MARR,1); d) 50,000 (F/P,actual MARR,1) 63. What is the dollar value of BB (to the nearest $100)? a) 19,400; b) 20,000; c) 21,200 64. 65. What is the dollar value of CC? a) 20,000 (P/F,inflation rate, 1); b) 20,000 (F/P,inflation rate,3) c) 20,000(P/F,real MARR,1); d) 20,000 What is the dollar value of DD? a) 19,400; b) 20,000; c) 22,500 66. Questions 61 to 66 Your municipality is planning the construction of a new sports complex on January 1, 2018 (Yes construction is almost instantaneous!!) You've requested by the municipal council to explain the relationship between the project actual and constant dollar flows for the project. The projected annual inflation rate is 3% The nominal (with inflation) interest rate is 5%. Actual cash flows are fully sensitive to inflation (i.e., they increase at the same rate as inflation) * Projected Cash Flows Cash Flows in January 1, 2018 dollars Cash Flows in Actual Dollars Initial Investment on January 1, 2018 50,000 EOY: 2018 2019 2020 2021 2022 20,000
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