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solve without excel 2. [7 points) Given the flowing cash flows, where some are expressed as con and others are inflated dollars: | Year |
solve without excel
2. [7 points) Given the flowing cash flows, where some are expressed as con and others are inflated dollars: | Year | 1 2 3 4 5 6 Cash Flow, $ 1000 2148.1 3000 4614.3 5000 6000 | Stated as: CV inflated CV inflated CV CV Assume a real interest rate of 10% per year and an inflation rate of 3.6364% per year. a) Find the present worth (Pw) of the cash flows shown above. b) Calculate the inflated interest rate (i). c) c) Using the inflated interest rate find the future equivalent of the above cash flows at the end of the Using the i Sixth year. (Hint: Constant-value Dollars (today's Dollars) = future dollars/(TF)Step by Step Solution
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