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The real cash flow occurring in year 2 is $80,000. If the inflation rate is 5 percent per year and the real rate of interest

The real cash flow occurring in year 2 is $80,000. If the inflation rate is 5 percent per year and the real rate of interest is 2 percent per year, calculate the nominal cash flow for year 2.

$88,200

$84,474

$80,000

$85,704

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