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Inflation has been 2% per year for the last couple of years. At the same time, the price of paella pans has increased by 4%
Inflation has been 2% per year for the last couple of years. At the same time, the price of paella pans has increased by 4% per year (nominal) to the current price of 150 / 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 10%.
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