• The equivalent cash flow in constant dollars at the end of year 0 is $_____ (Round to the nearest dollar.)
• The equivalent cash flow in constant dollars at the end of year 1 is $_____ (Round to the nearest dollar.)
• 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 6%, what is the present worth of the cash flow?

The present worth of the cash flow is $_________(Round to the nearest dollar.)

Is this project acceptable? Yes or No?

Consider the following project's after-tax cash flow and the expected annual general inflation rate during the project period. (Click on the following icon in order to copy its contents into a spreadsheet.) (a) Determine the average annual general inflation rate over the project period. The average annual general inflation rate is %. (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 0 is $47,000. (Round to the nearest dollar.)