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 present value of the year 3 cash flow?
A) $10,213.35
B) $12,372.00
C) $9,777.77
D) $9,105.23
E) $13,285.83
Correct Answer:
Verified
Correct Answer:
Verified
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