An investment plan includes a purchasing at the beginning


An investment plan includes a purchasing at the beginning of the year. A piece of machinery costing $134, which will be fully depreciated in the next yea, and then salvaged with zero value. The profits for this year are estimated to be $162, and the combined tax rate is 14%. The real interest rate is unknown, but assumed nonnegative. What is the smallest inflation rate at which the overall investment is unprofitable (regardless of real interest)? (Provide your answer as a number, not a percentage, with 0.01 precision.

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Financial Management: An investment plan includes a purchasing at the beginning
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