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If future cash flows are to be expressed in actual $ (A$), the interest rate that should be used in determining the present worth is

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If future cash flows are to be expressed in actual $ (A$), the interest rate that should be used in determining the present worth is the market interest rate. True False An equipment was purchased two years ago financing for 5 years at 8% interest compounded monthly. The inflation rate for the past two years has been 3% per year and is expected to remain the same for the next 3 years. Compute the real interest rate for this loan A.5.15% OB. 8.73% C. 5.4596 D. 6.86%

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