Mr. Art Deco will be paid $100,000 one year hence. This is a nominal flow, which he discounts at an 8% nominal discount rate: PV = 100,000/1.08 = $92,593 The inflation rate is 4%. Calculate the PV of Mr. Deco’s payment using the equivalent real cash flow and real discount rate. (You should get exactly the same answer as he did.)
https://finegrades.org/wp-content/uploads/2021/08/logo-300x75.png 0 0 admin https://finegrades.org/wp-content/uploads/2021/08/logo-300x75.png admin2022-05-14 07:35:202022-05-14 07:35:20Mr. art deco will be paid $100,000 one year hence.