Assume that the 12 rate used in problem 2 is a constant


Assume that the 12% rate used in problem 2 is a constant dollar rate (i’). Now discount your end of year cash flows from problem 10 by inflation (f=4%) and re-compute your IRR’ and NPW’. What is the market interest rate (i)______________ IRR’__________ NPW’_______________

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Business Economics: Assume that the 12 rate used in problem 2 is a constant
Reference No:- TGS01081978

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