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Could you give me only answer simply please? Suppose you will be paid $170,000 one year hence. This is a nominal flow, which you discount
Could you give me only answer simply please?
Suppose you will be paid $170,000 one year hence. This is a nominal flow, which you discount at an 10% nominal discount rate: PV = $170,000/1.10 = $154,545 The inflation rate is 2%. Calculate the PV of your payment using the equivalent real cash flow and real discount rate. (Do not round intermediate calculations. Round your "Real cash flow" and "Present value" answers to the nearest whole dollar amount. Enter the "Real discount rate" as a percent rounded to 3 decimal places.) Real cash flow Real discount rate % Present value Suppose you will be paid $170,000 one year hence. This is a nominal flow, which you discount at an 10% nominal discount rate: PV = $170,000/1.10 = $154,545 The inflation rate is 2%. Calculate the PV of your payment using the equivalent real cash flow and real discount rate. (Do not round intermediate calculations. Round your "Real cash flow" and "Present value" answers to the nearest whole dollar amount. Enter the "Real discount rate" as a percent rounded to 3 decimal places.) Real cash flow Real discount rate % Present valueStep by Step Solution
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