Multiple Choice
Your firm expects to receive a cash flow in two years of $10,816 in nominal terms. If the real rate of interest is 2 percent and the inflation rate is 4 percent, what is the real cash flow for year 2?
A) $11,236
B) $10,816
C) $10,000
D) $9,246
Correct Answer:
Verified
Correct Answer:
Verified
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