The

Determine:

The equivalent cash flow in constant dollars at the end of year 2 is

(Round to the nearest dollar.)

The equivalent cash flow in constant dollars at the end of year 3 is

(Round to the nearest dollar.)

(c) If the annual inflation-free interest rate is 8%, what is the present worth of the cash flow?

(Round to the nearest dollar.) Is this project acceptable? Yes/ No

Score: 8.57 of 20 pts 5 of 5 (5 complete) HW Score: 88.57%, 88.57 of 100 pts & Problem 11-21 (algorithmic) Question Help O Consider the following project's after-tax cash flow and the expected annual general inflation rate during the project period. End of Year General Inflation Rate Expected Cash Flow (In Actual S) - $51,000 $36,000 $36,000 $36,000 3.9% 4.6 6.0 (a) Determine the average annual general inflation rate over the project period. The average annual general inflation rate is 4.8 %. (Round to two decimal places.) (b) Convert the cash flows in actual dollars into equivalent constant dollars with the base year 0. The equivalent cash flow in constant dollars at the end of year is $ -51,000. (Round to the nearest dollar.) The equivalent cash flow in constant dollars at the end of year 1 is $ 34649. (Round to the nearest dollar) The equivalent cash flow in constant dollars at the end of year 2 is $32904. (Round to the nearest dollar.)