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    Principles of Corporate Finance Study Set 5
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    Exam 6: Making Investment Decisions With the Net Present Value Rule
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    A Cash Flow Received in Two Years Is Expected to Be
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A Cash Flow Received in Two Years Is Expected to Be

Question 59

Question 59

Multiple Choice

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

Correct Answer:

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