A cash flow received in two years is expected to be $10,816 in nominal terms. If the real rate of interest is 2% and the inflation rate is 4%, what is the real cash flow for year 2? A $ 11,236 B $ 10,816 C. $10,000 D. $9,246
A cash flow received in two years is expected to be $10,816 in nominal terms. If the real rate of interest is 2% and the inflation rate is 4%, what is the real cash flow for year 2? A $ 11,236 B $ 10,816 C. $10,000 D. $9,246
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...
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Question
A cash flow received in two years is expected to be $10,816 in nominal terms. If the
real rate of interest is 2% and the inflation rate is 4%, what is the real cash flow for year
2?
A $ 11,236
B $ 10,816
C. $10,000
D. $9,246
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