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solve a b c d 4 Assume a company expects 2.8% inflation and expects its after-tax cash flows to increase by 5.2% per year. Also
solve a b c d
4 Assume a company expects 2.8% inflation and expects its after-tax cash flows to increase by 5.2% per year. Also assume after-tax cash flow is $520,000 in the base year (t=0). Its market MARR What is your projection of nominal or actuals cash flow five years after this baseline (t=5)? (which includes the inflation premium) is 12.0%. a. b. What is the present value in actuals of this t=5 projection of actual cash flow? C. What is your projection of reals cash flow five years after this baseline (i.e., t=5 cash flow in terms of t=0 purchasing power)? What is the present value in reals of this t=5 projection of real cash flowStep by Step Solution
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