Question
Fill in the missing items in the following table. Assume that the real interest rate is 3% per year, and inflation is expected to be
Fill in the missing items in the following table. Assume that the real interest rate is 3% per year, and inflation is expected to be constant at 2% per year.
**I need help on how to compute with step by step**
| Year
| Nominal cash flow | Real cash flow |
| 0 | 100,000 | 100,000 |
| 1 | + 12,000 | ? |
| 2 | +22,000 | ? |
| 3 | +15,000 | ? |
| 4 | +10,000 | ? |
| Net present value |
|
|
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
