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Mr. Art Deco will be paid $130,000 one year hence. This is anominal flow, which he discounts at an 7% nominal discountrate:PV = $130,000 /

Mr. Art Deco will be paid $130,000 one year hence. This is anominal flow, which he discounts at an 7% nominal discountrate:PV = $130,000 / 1.07 = $121,495The inflation rate is 2%.Calculate the 2 answers

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