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    Principles of Corporate Finance
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    Exam 6: Making Investment Decisions With the Net Present Value Rule
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    The Real Cash Flow Occurring in Year 2 Is $60,000
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The Real Cash Flow Occurring in Year 2 Is $60,000

Question 60

Question 60

Multiple Choice

The real cash flow occurring in year 2 is $60,000.If the inflation rate is 5% per year and the real rate of interest is 2% per year,calculate the nominal cash flow for year 2.


A) $60,000
B) $62,424
C) $66,150
D) $63,654

Correct Answer:

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