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Madeleine has invested money in the kitchen of her caf . She believes the real terminal value of the equipment will be $ 4 0

Madeleine has invested money in the kitchen of her caf. She believes the real terminal value of the equipment will be $40,500 in 5 years. What is the nominal pre-tax terminal value in 5 years if the inflation rate is 2.5% and the risk premium is 1%?
Group of answer choices
$40,000
$45,822.03
$40,500
$45,256.33

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