Real value of todays dollars


Assignment:

An investment pays S10 000 in five years.

(a) If inflation is 10% per year, what is the real value of the $10 000 in today's dollars?
(b) If inflation is 10% and the real ALARR is 10%, what is the present worth?
(c) What actual dollar ALARR is equivalent to a 10% real MARR when inflation is 10%?
(d) Compute the present worth using the actual dollar ALARR from part (c).

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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