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Given these cash flows in actual dollars, convert the cash flows to equivalent cash flows in constant dollars if the base period is time 0.
Given these cash flows in actual dollars, convert the cash flows to equivalent cash flows in constant dollars if the base period is time 0. The market interest rate is 15% per year and the general inflation rate is 5% per year. Calculate the present worth for the constant dollars cash flows. (Note: you need to keep the same structure of the cash flow diagram, i.e., uniform series in the middle). Write the value of each cash flow below the figure. $30k Actual 0 1 2 3 4 14 $10k $10k $10k $10k $10K $100,000 3 Constant 0 1 2 3 4 141 2 Given these cash flows in actual dollars, convert the cash flows to equivalent cash flows in constant dollars if the base period is time 0. The market interest rate is 15% per year and the general inflation rate is 5% per year. Calculate the present worth for the constant dollars cash flows. (Note: you need to keep the same structure of the cash flow diagram, i.e., uniform series in the middle). Write the value of each cash flow below the figure. $30k Actual 0 1 2 3 4 14 $10k $10k $10k $10k $10K $100,000 3 Constant 0 1 2 3 4 141 2
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