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Inflation has been 2% per year for the last couple of years. At the same time, the price for paella pans has increased by 3%
Inflation has been 2% per year for the last couple of years. At the same time, the price for paella pans has increased by 3% per year (nominal) to the current price of NOK 200 / unit. Inflation and price increases for paella pans are expected to remain the same. What is the present value of selling 1000 paella pans annually for the next ten years (years 1 to 10) if the nominal discount rate is 8%. (Answer in millions of kroner, two decimals is enough)
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