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Inflation. A marketing company evaluates the purchase of a commercial premises for the sale of its products. Based on its estimates at current prices, it

Inflation. A marketing company evaluates the purchase of a commercial premises for the sale of its products. Based on its estimates at current prices, it will have operating costs of $ 200,000 per year and revenues of $ 650,000 per year. Due to the company's policy not to increase the prices of its products, monthly income will remain constant but its costs will increase with annual inflation, which is estimated to be 5.4% on average. At the end of 10 years it is estimated that the commercial premises will have a sale value of $ 6,000,000 in current pesos. The company wants a real minimum return of 17% per year. a) What will be the maximum price at which you must buy the commercial premises so that it is convenient for you to invest in it? b) If, in addition to operating costs, the company must pay royalties for the product patent at a rate of 3% of income, how and by how much should this affect the purchase price?

The company's management conducts an economic study to estimate inflation. As a result, he estimated that inflation for the next 10 years would be the following:image text in transcribed

a) What is the new annual average inflation? b) Taking into account the new inflations, calculate the maximum purchase price.

AO 1 2 3 4 5 6 7 8 9 10 Inflacin 4.7% 6.2% 5.0% 3.8% 4.4% 5.1% 5.7% 6.0% 4.9% 5.5%

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