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The following table shows a cash flow schedule for an investment opportunity. (Q12-13) Annual nominal cash Year CPI flow 0 0 100 $130,000 1 103.5
The following table shows a cash flow schedule for an investment opportunity. (Q12-13) Annual nominal cash Year CPI flow 0 0 100 $130,000 1 103.5 $45,000 2 2 107.12 -$10,000 3 110.87 $220,000 Compute the annual inflation rate. A. 2% B. 3% C. 3.5% D. 4% E. 4.5%
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