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The Cash Flow in Dollars Received in Year 3 Is

Question 12

Multiple Choice

The cash flow in dollars received in year 3 is expected to be $12,372. The firm uses a real discount rate of 4% and the inflation rate is expected to be 2.5%. What is the real cash flow for year 3?


A) $13,916.82
B) $11,488.63
C) $10,998.66
D) $10,242.15
E) $14,944.75

Correct Answer:

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