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Precise solution to all the 3 parts is needed. Part c) is the most important!!! Thanks Part a) If cash flows are expressed in actual
Precise solution to all the 3 parts is needed. Part c) is the most important!!! Thanks
Part a) If cash flows are expressed in actual dollars, the rate that should be used as the interest factor is the Part b) If the real interest rate is 7% and the inflation rate is 3.5%, what is the market interest rate, expressed as a percentage to 2 decimal place accuracy? Part c) A piece of equipment costs $23.000 now. An engineer estimates that the price will be up to $28,000 in 5 years when they will need to buy a replacement. If the company has an investment account that has a 6% APR, how much should they save every month to be ready for the replacement purchase? What is the real growth of their money
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